In the Basic Keynesian Model,all of the Following Are True

question 117

Multiple Choice

In the basic Keynesian model,all of the following are true EXCEPT

• A) planned consumption always equals actual consumption.
• B) planned private-sector investment always equals actual investment.
• C) planned government spending always equals actual government spending.
• D) planned net exports always equal actual net exports.
• E) planned total spending equals planned aggregate expenditurE.

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Definitions:

Consumer Surplus

The disparity between what consumers are prepared to pay for a product or service and the actual amount they end up paying.

Consumer Surplus

The gap between the total price consumers are ready to pay for a good or service and what they actually spend on it.

Grapefruit

A citrus fruit known for its slightly bitter and sour taste, commonly used in juices, culinary dishes, and as a diet staple.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus what they actually receive, typically representing profits.