In the Simple Keynesian Model with No Government and Foreign

question 84

Multiple Choice

In the simple Keynesian model with no government and foreign sectors,assume that full employment occurs at an output of $10,000.With a marginal propensity to consume of 0.5 and equilibrium output at $9,600,by how much will investment spending have to increase to move the economy to full employment?

• A) $100
• B) $400
• C) $200
• D) $50

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Definitions:

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A theory in communication that not only does the media influence what topics people think about (first level), but also how people think about these topics in terms of attributes and assessments (second level).

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