According to the Keynesian-Cross Analysis, When There Is a Shift $\Delta$

question 124

Multiple Choice

According to the Keynesian-cross analysis, when there is a shift upward in the government-purchases schedule by an amount $\Delta$ G and the planned expenditure schedule by an equal amount, then equilibrium income rises by:

• A) one unit.
• B) \(\Delta\)G.
• C) \(\Delta\)G divided by the quantity one minus the marginal propensity to consume.
• D) \(\Delta\)G multiplied by the quantity one plus the marginal propensity to consume.

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Definitions:

Synaptic Cleft

The small gap between neurons at a synapse, across which neurotransmitters are released to transmit neuronal signals.

ACh

Acetylcholine (ACh) is a neurotransmitter involved in muscle activation, memory, and learning by transmitting signals between nerve cells.

Neurotransmitters

Neurotransmitters are chemical messengers that neurons use to communicate with each other or with muscles across synapses.

Postsynaptic Cell

The neuron or cell that receives a signal (neurotransmitter) from another neuron at a synapse.