In the Keynesian Aggregate Expenditure Model, the Equilibrium Level of Income

question 2

Multiple Choice

In the Keynesian aggregate expenditure model, the equilibrium level of income is achieved when

• A) actual saving equals actual investment.
• B) planned aggregate expenditures equal total output.
• C) consumption equals income times the marginal propensity to consume.
• D) the marginal propensity to consume equals planned output.

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Definitions:

Simple Random Sampling

A sampling method where each member of a population has an equal chance of being included in the sample.

Confidence Interval

A range of values, derived from the sample data, that is likely to contain the value of an unknown population parameter.

Standard Deviation

A metric indicating the degree of spread or distribution among a collection of numbers.

Sample Size

The number of observations or individuals participating in a study from which conclusions about the larger population can be drawn.