Author Question: In the Keynesian aggregate expenditure model, the 45-degree line indicates: a. amounts households ... (Read 58 times)

Yolanda · **on:** Jun 30, 2018

In the Keynesian aggregate expenditure model, the 45-degree line indicates:
a. amounts households plan to spend at each possible level of income.
b. amounts households plan to save at each possible level of income.
c. all income levels at which the planned spending of decision makers equals total output.
d. all income levels at which the marginal propensity to consume is one.

Question 2

The term public sector refers only to federal government purchases of goods and services.
a. True
b. False
Indicate whether the statement is true or false