In the Keynesian Cross Diagram,an Increase in Investment Spending Because

question 6

Multiple Choice

In the Keynesian cross diagram,an increase in investment spending because companies become more optimistic about investment profitability causes the aggregate demand function to shift ________ and the equilibrium level of aggregate output to ________,everything else held constant.

• A)up;rise
• B)up;fall
• C)down;rise
• D)down;fall

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Definitions:

Pulsating

Describes a phenomenon where a physical quantity (such as current or voltage) varies in magnitude in a regular or irregular rhythm.

Linear

Pertaining to something that is directly proportional or follows a straight-line relationship in mathematics or physics.

Cosine

A trigonometric function that represents the ratio of the length of the adjacent side to the hypotenuse of a right-angled triangle.

RMS

Root Mean Square is a statistical tool used to determine the magnitude of a variable quantity, frequently applied in determining the effective value of alternating current.