In the Keynesian aggregate consumption-income graph, the vertical ...

[SO00]

In the Keynesian aggregate consumption-income graph, the vertical distance between the consumption function and the 45-degree line shows the:
 a. amount of savings (or dissavings) at that level of disposable income.
  b. amount of disposable income at that level of consumption.
  c. increase in planned business investment at each level of inflation.
  d. increase in income that causes each change in real GDP.

Question 2

Which of the following offers theories to explain why the government, like the private sector, may also fail?
 a. Social economics.
  b. Public choice theory.
  c. Rational expectations theory.
  d. Keynesian economics.

[ciecieme]

Answer to Question 1

a

Answer to Question 2

b

[SO00]

Thank you

[ciecieme]

Happy to help you