Consider a Simple Macro Model with a Constant Price Level

question 144

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.In such a model,a downward shift of the saving function causes equilibrium national income to

• A)fall because the AE function shifts downward simultaneously.
• B)rise because the AE function shifts upward simultaneously.
• C)remain constant but consist of more consumption and less investment.
• D)remain constant but consist of less consumption and more investment.
• E)remain constant because it does not affect desired aggregate expenditure.

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Definitions:

Cultural Goals

The objectives, ambitions, or desired outcomes that are widely accepted and pursued within a culture.

Cultural-Structural Strain

Tension or conflict within a society caused by disparities between culturally-endorsed goals and the structurally-available means to achieve them.

Ku Klux Klan

An extremist organization in the United States historically known for promoting white supremacy, racism, anti-Semitism, and violence against minority groups.

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Groups or individuals that seek to revive and promote ideologies associated with Nazism, including racism, anti-Semitism, and the glorification of Adolf Hitler.