17. Consider the following income/expenditure diagram in the simple Keynesian model. C,I,G, (S,T) Y=C+S+T C+I+G At Yo. the situation in the output market would be a. equilibrium b. excess demand (shortage) c. excess supply (surplus) d. one in which we would expect output to increase in the future. e. none of the above.
17. Consider the following income/expenditure diagram in the simple Keynesian model. C,I,G, (S,T) Y=C+S+T C+I+G At Yo. the situation in the output market would be a. equilibrium b. excess demand (shortage) c. excess supply (surplus) d. one in which we would expect output to increase in the future. e. none of the above.
Chapter11: Managing Aggregate Demand: Fiscal Policy
Section: Chapter Questions
Problem 2TY
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Question
![17. Consider the following income/expenditure diagram in the simple Keynesian model.
C,1,G, (S,T)
Y=C+S+T
C+1+G
Y
Yo
At Yo, the situation in the output market would be
a. equilibrium
b. excess demand (shortage)
c. excess supply (surplus)
d. one in which we would expect output to increase in the future.
e. none of the above.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2ea73f7b-6cc9-430b-9074-8088a1bae172%2F124ba41d-2bd6-49f1-b3d0-03a347a63c23%2F1qw215l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:17. Consider the following income/expenditure diagram in the simple Keynesian model.
C,1,G, (S,T)
Y=C+S+T
C+1+G
Y
Yo
At Yo, the situation in the output market would be
a. equilibrium
b. excess demand (shortage)
c. excess supply (surplus)
d. one in which we would expect output to increase in the future.
e. none of the above.
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