In the Keynesian-Cross Model, If Government Purchases Increase by 250

question 67

Multiple Choice

In the Keynesian-cross model, if government purchases increase by 250, then the equilibrium level of income:

• A) increases by 250.
• B) increases by more than 250.
• C) decreases by 250.
• D) increases, but by less than 250.

---

Definitions:

Basic Physiological Needs

Fundamental human requirements for survival, such as air, water, food, shelter, and sleep, based on Maslow's hierarchy of needs.

Self-Determination Theory

A theory of motivation that posits that people are most motivated when they feel that they have autonomy, competence, and relatedness.

McClelland's Need

Refers to a theory identifying three primary needs in work situations: the need for achievement, the need for power, and the need for affiliation.

Alderfer's Relatedness Needs

A component of Alderfer's ERG theory focusing on the interpersonal relationships and social needs of individuals within an organization.