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The multiplier in the Keynesian model equals:
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- Given the following information on spending in a simple Keynesian model what is the level of autonomous spending? CA = 800 GA = 600 IA = 400 MPC =2/3 XA =500 MA =300Name four differences between the Keynes and Fishers model of consumptionExplain the relationship between consumption and saving in the Keynesian model.
- What role do inventories play in the equilibrating process in the simple Keynesian model (as described in the TE-TP framework)?Is Say’s Law or Keynes’s Law a better macroeconomic perspective for our economy ? Explain.In the Keynesian Cross model, an increase in autonomous consumption would result in a decrease in output. True or False
- 10 . In the “complete Keynesian model”, the investment functions was I = I0 - f(i). An analyst now proposes the following investment function: I = I0 - f(i) + qY, where “q” is a parameter and Y is national income = GDP. Provide two different arguments, i.e. explanations as to why this investment function makes sense. The focus is on the new term, qY (q times Y), in the function.calculate the marginal propensity to consume.
