In the Short Run in the Keynesian Model,a Sharp Decline

question 21

Multiple Choice

In the short run in the Keynesian model,a sharp decline in oil prices would leave the economy with a ________ level of output and a ________ real interest rate.

• A)higher; lower
• B)lower; higher
• C)lower; lower
• D)higher; higher

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Definitions:

Statement Of Cash Flows

A financial statement that highlights the major activities that impact cash flows and, hence, affect the overall cash balance.

Operating Activities

These involve the primary day-to-day activities of a business, such as sales and the purchase of goods or services, which are reflected in its cash flow.

Comparative Balance Sheet

A financial statement that presents the financial position of a company at two or more different points in time, allowing for analysis of trends in assets, liabilities, and equity.

Net Income

Net Income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.