Author Question: In the simple Keynesian model, equilibrium exists when a. actual investment equals realized ... (Read 71 times)

Mimi · **on:** Jun 30, 2018

In the simple Keynesian model, equilibrium exists when

a. actual investment equals realized investment.
b. exports equal imports.
c. savings is equal to government spending plus desired investment minus taxes.
d. national product is equal to consumption minus desired investment plus government spending.
e. None of the above

Question 2

The assumption that the marginal product of labor decreases as the labor input increases implies that

A) output decreases as the labor input increases.
B) the wage increases as the labor input increases.
C) the production function is concave.
D) the production function shifts upward.