8.The Keynesian cross shows: A.determination of equilibrium income and the interest rate in the short run. B.determination of equilibrium income and the interest rate in the long run. C.equality of planned expenditure and income in the short run. D.equality of planned expenditure and income in the long run. (C)
9.The government-purchases multiplier indicates how much ______ change(s) in response to a $1 change in government purchases.
10.In the Keynesian-cross model, if the MPCequals 0.75, then a $1 billion increase in government spending increases planned expenditures by ______ and increases the equilibrium level of income by ______.
11.According to the Keynesian-cross analysis, when there is a shift upward in the government-purchases schedule by an amount Gand the planned expenditure schedule by an equal amount, then equilibrium income rises by: