In the Simple Keynesian Cross Model, the Equilibrium Level of Real

question 10

Multiple Choice

In the simple Keynesian Cross model, the equilibrium level of real disposable income is determined by:

• A)the real interest rate.
• B)prices.
• C)aggregate expenditures.
• D)aggregate supply.

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Definitions:

Output Rises

Refers to an increase in the production level of goods and services over a certain period.

Output Rises

An increase in the production of goods and services within an economy.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service relative to its market price.

Units

A standard measurement for quantity used to quantify material amount or the extent of something.