Suppose planned expenditures exceed output. Explain how equilibrium is restored in this economy.
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Q11: John Maynard Keynes argued that the fundamental
Q12: In the income-expenditure model, equilibrium output is
Q13: When output exceeds planned expenditures, there is
Q14: In the income-expenditure model, firms stand ready
Q15: The marginal propensity to save (MPS)is the
A)
Q17: The income-expenditure model is best used for
Q18: The level of GDP at which planned
Q19: If an economy is producing a level
Q20: When prices do not change very much,
Q21: An increase in consumer confidence will
A) not
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