Answer to Question #219948 in Macroeconomics for vee

Question

4. How is the multiplier affected by a decrease in leakages from the Keynesian model with a government?

1] it decreases [2] it increases [3] no change [4] multiplier is not affected 

5. In the Keynesian model, if inventories start to decrease, it could be a signal that...

[1] aggregate spending is greater than total output and businesses should decrease output. [2] aggregate spending is greater than total output and businesses should increase output. [3] aggregate spending is less than total output and businesses should decrease output. [4] aggregate spending is less than total output and businesses should increase output.

6.In the Keynesian model with a government and foreign sector an increase in government spending …

 [1] decreases the equilibrium level of income and imports. [2] increases the equilibrium level of income and decrease imports. [3] increases the equilibrium level of income and imports. [4] increases both exports and imports.

Answer 1

4.[1] it decreases

5.[2] aggregate spending is greater than total output and businesses should increase output.

6.[2] increases the equilibrium level of income and decrease imports.