In the Keynesian Model, to Understand the Determination of Income

question 45

Multiple Choice

In the Keynesian model, to understand the determination of income and employment it is necessary to understand

• A) how aggregate supply is determined.
• B) how aggregate demand is determined.
• C) how long-run aggregate supply is determined.
• D) how interest rates are determined.

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Definitions:

Usage Of Trade

Any practice or method of dealing having such regularity of observance in a place, vocation, or trade as to justify an expectation that it will be observed with respect to the transaction in question.

Commercial Practices

Activities, methods, and ethics involved in conducting business and trading of goods and services in the marketplace.

Oral Contract

An agreement between parties that is spoken and not memorialized in writing, yet is fully legal and binding.

Received and Accepted

A term indicating that goods or services have been both delivered and acknowledged as meeting the terms of a contract or agreement.