1.Equilibrium income is reached when injections equal withdrawals. true/false
government spending _____ equilibrium income, and increases in taxes _____ equilibrium income.
3.Which of the following equations is NOT true at equilibrium in the simple Keynesian model?
a.Y = C + S
b. AE = C + I
c. I = S
d. AE > Y
Question 1 b.increase; decrease national income increases with increase in expenditure but decreases with... View the full answer