In the Keynesian-Cross Model, What Adjusts to Move the Economy

question 70

Multiple Choice

In the Keynesian-cross model, what adjusts to move the economy to equilibrium following a change in exogenous planned spending?

• A) planned spending
• B) the interest rate
• C) production
• D) the price level

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Definitions:

Köhler

Refers to Wolfgang Köhler, a German psychologist and one of the founders of Gestalt psychology, which emphasizes the organization of perception and thinking in a "whole" rather than in isolated elements.

Latent Learning

A form of learning that occurs without any obvious reinforcement of the behavior or associations that are learned, becoming apparent only when there is an incentive to demonstrate it.

Reinforced Behaviors

Actions that are encouraged and increased in frequency due to the application of a positive or negative stimulus following the behavior.

Internal Colonialism

Involves one race or ethnic group subjugating another in the same country. It prevents assimilation by segregating the subordinate group in terms of jobs, housing, and social contacts.