In the Keynesian AE Model,what Impact Does an Increase in Real

question 7

Multiple Choice

In the Keynesian AE model,what impact does an increase in real wealth have on AE?

• A)It shifts AE down, increases inventories, and reduces output.
• B)It shifts AE up, increases inventories, and causes an increase in output.
• C)It shifts AE up, reduces inventories, and causes an increase in output.
• D)It shifts AE down, reduces inventories, and reduces output.

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Definitions:

Reformation

The legal process of modifying a contract or document to accurately reflect the true intentions of the parties involved.

Quasi Contract

An obligation imposed by law to prevent unjust enrichment, even though no actual contract exists between the parties involved.

Specific Performance

A legal remedy requiring a party to perform a specific act, often the fulfillment of contractual obligations, as opposed to paying damages.

Gross Negligence

An extreme lack of care that demonstrates a willful or reckless disregard for the safety or lives of others, significantly beyond ordinary negligence.