In the Keynesian Model of the Business Cycles

question 23

Multiple Choice

In the Keynesian model of the business cycles,

• A)unanticipated changes in government expenditures cause output to change by change in real wage.
• B)anticipated changes in government expenditures cause output to change by changes in real wage.
• C)anticipated changes in money supply cause output to change by changes in real wage.
• D)anticipated or unanticipated changes in money supply cause output to change by changes in real wage.

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Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Operations

Activities involved in the day-to-day running of a business for the purpose of producing value for the stakeholders.

Accounts Receivable

Money owed to a company by its customers for goods or services provided on credit.

Financing Activities

Transactions and events that affect long-term liabilities and equity of an entity, reflected in the cash flow statement.