In the Traditional Keynesian Model, an Increase in Government Spending

question 24

Multiple Choice

In the traditional Keynesian model, an increase in government spending leads to all of the following EXCEPT

• A)an increase in aggregate demand.
• B)a higher price level.
• C)an increase in consumption.
• D)higher real GDP.

---

Definitions:

Ontario Court

A judicial institution in the province of Ontario, Canada, responsible for administering justice through interpreting and applying the law.

B.C. Supreme Court

The superior trial court for the province of British Columbia, Canada, dealing with both civil and criminal cases.

Court of Common Pleas

A general jurisdiction trial court in some states of the United States, handling civil and criminal cases.

Court of King's Bench

A historical court in England that dealt with common law matters, including civil and criminal cases.