According to the Keynesian Aggregate Expenditures Model, Equilibrium and Full

question 41

Multiple Choice

According to the Keynesian aggregate expenditures model, equilibrium and full employment:

• A) always occur at the same income level of real GDP.
• B) may differ, but there is an automatic mechanism that directs the economy toward full-employment equilibrium.
• C) could never occur at the same level of real GDP.
• D) do not necessarily occur at the same level of real GDP.

---

Definitions:

Ugandan Producers

Individuals or companies involved in the creation or manufacturing of goods and services in Uganda.

Ugandan Consumers

Individuals and households in Uganda that buy goods and services for personal use.

Coffee

A brewed drink prepared from roasted coffee beans, the seeds of berries from certain Coffea species.

Domestic Price

The price of goods or services within a country, unaffected by international market prices or exchange rates.