In a Simple Keynesian Model,when Net Exports Increase,the

question 51

Multiple Choice

In a simple Keynesian model,when net exports increase,the

• A) C + I + G + (X - M₁) line shifts downward.
• B) 45-degree line becomes flatter.
• C) multiplier falls to zero.
• D) aggregate demand curve shifts to the left.
• E) equilibrium level of GDP increases by an amount greater than the increase in net exports.

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Definitions:

Pros and Cons

The advantages and disadvantages of a particular decision, course of action, or situation, considered to help make a more informed decision.

Groupthink

A psychological phenomenon occurring within a group of people, in which the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Fake Electric Shocks

A method used in psychological experiments where participants are led to believe they will receive or have received electrical shocks, when in fact no such shocks are actually administered.

Dissenting Opinion

An opinion written by a judge or justice that disagrees with the decision reached by the majority of his or her colleagues.