Keynes thought that one macroeconomic problem is that an economy: ...

[LCritchfi]

Keynes thought that one macroeconomic problem is that an economy:
 a. can tend toward an equilibrium level of output that is below the potential level.
 b. will move back to its potential after a business cycle on its own.
 c. always operates at the potential and business cycles are created by government intervention.
  d. can be pushed below the equilibrium level of output by fiscal policy.
 e. can be pushed away from the potential if prices and wages are flexible.

Question 2

Which of the following correctly illustrates the leakagesinjections approach to GDP?
 a. DI + (NT) = C + I + G + (X  M)
  b. S + C + NT = DI
 c. S + C + (NT) = I + G + (X  M)
 d. S + (NT) + M = I + G + X
 e. S + (NT) = I + G + (X  M)

[lauravaras]

Answer to Question 1

b

Answer to Question 2

d

[LCritchfi]

YES! Correct, THANKS for helping me on my review

[coreycathey]

Thanks for the timely response, appreciate it