In a Keynesian cross diagram, if the government decreases the tax rate, or makes theleakage of taxation lessa) the aggregate expenditure function will shift to the left, but its slope will notchangeb) the aggregate expenditure function will shift to the right, but its slope will notchangec) the slope of the aggregate expenditure function will increase and increasesthe point at which it crosses the 45 degree line where Aggregate Output isequal to Aggregate Expendituresd) the slope of the aggregate expenditure function will decrease

Keynesian economics is a macroeconomic hypothesis that stresses the job of aggregate demand in…

In a Keynesian cross diagram, if the government decreases the tax rate, or makes the leakage of taxation less a) the aggregate expenditure function will shift to the left, but its slope will not change b) the aggregate expenditure function will shift to the right, but its slope will not change Oc) the slope of the aggregate expenditure function will increase and increases the point at which it crosses the 45 degree line where Aggregate Output is equal to Aggregate Expenditures rease

In a Keynesian cross diagram, if the government decreases the tax rate, or makes the leakage of taxation less a) the aggregate expenditure function will shift to the left, but its slope will not change b) the aggregate expenditure function will shift to the right, but its slope will not change Oc) the slope of the aggregate expenditure function will increase and increases the point at which it crosses the 45 degree line where Aggregate Output is equal to Aggregate Expenditures rease

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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