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In: Economics

[9] Using the Keynesian approach, if leakages from the spending stream are less than injections, the...

[9] Using the Keynesian approach, if leakages from the spending stream are less than injections, the current level of output is:

A) less than the equilibrium level of output, and will increase.

B) less than the equilibrium level of output, and will decrease.

C) greater than the equilibrium level of output, and will increase.

D) greater than the equilibrium level of output, and will decrease.

[11] A primary assumption of new classical economics is:

A) wages and prices are not flexible.

B) an upward sloping aggregate demand curve.

C) over the long run the economy will operate at the natural rate of unemployment.

D) all of these answers are correct.

Solutions

Expert Solution

Rahul Sunny answered 1 year ago
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