According to the Keynesian-Cross Analysis, When There Is a Shift

question 70

Multiple Choice

According to the Keynesian-cross analysis, when there is a shift upward in the government-purchases schedule by an amount ΔG, then equilibrium income rises by:

• A)one unit.
• B)ΔG.
• C)ΔG divided by one minus the marginal propensity to consume.
• D)ΔG multiplied one plus the marginal propensity to consume.

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Definitions:

Social Experiences

Interactions with others and the environment that contribute to the development of an individual's beliefs, attitudes, and behaviors.

Habituation-Dishabituation

The process by which an organism decreases or stops its response to a repetitive stimulus (habituation) and then increases its response again when the stimulus changes or is new (dishabituation).

Cognitive Abilities

The mental skills that involve the ability to reason, plan, solve problems, think abstractly, and learn.

Addition Problem

A mathematical operation where two or more quantities are combined to make a sum.