In the Keynesian Model, If Aggregate Expenditures Exceed Aggregate Output

question 83

Multiple Choice

In the Keynesian model, if aggregate expenditures exceed aggregate output and inventories of firms fall, then the aggregate output and the business sector could be expected to:

• A) increase output.
• B) decrease output.
• C) decrease investment.
• D) hire fewer workers.

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Definitions:

Exhibition Market

The sector of the film industry concerned with the distribution and screening of films to the public.

Television

An electronic system of transmitting moving images and sound from a source to a receiver by means of radio waves or cables.

Negative Pickup

A financing agreement where a movie studio agrees to buy the rights to a film after it is completed, typically guaranteeing distribution.

Horizontal Integration

A business strategy where a company acquires, merges with, or takes over another company in the same industry at the same stage of production.