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

question 35

Multiple Choice

According to the Keynesian-cross analysis, when there is a shift upward in the government-purchases schedule by an amount ∆G and the planned expenditure schedule by an equal amount, then equilibrium income rises by:

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

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Definitions:

Top-Down Analysis

An approach that starts with the broader, general aspects of a system and works towards more detailed parts.

Customer Demographics

Statistical characteristics of consumers, such as age, gender, income, and education, used to identify market segments.

TAM, SAM, SOM

stands for Total Addressable Market, Serviceable Available Market, and Service Obtainable Market, respectively, and they are metrics used to estimate the potential market size and revenue opportunity for a product or service.

Disposable Income

The amount of income left to an individual after taxes have been paid, available for spending, saving or investing.