According to the Keynesian cross model if the marginal propensity to consume is 2/3, cut in taxes of 120 Billion increases equilibrium income by  a) 160 Billion  b) 180 Billion  C) 240 Billion  d) 360 Billion

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 =300

Consider a standard Keynesian model but with two types of consumers, Type A who have low marginal propensities to consume and Type B who have high marginal propensities to consume. An economy with relatively more Type A consumers is more vulnerable to a negative shock to investment demand.Answer true, false, or uncertain. Please briefly explain your answer.

The policy prescription advocated by Keynes is summarized by sentence that argues that “a somewhat -----of investment is only means to the approximation of full employment”.   A) Comprehensive socialization   B) Simple boost   C) Measurable reduction   D) Constant change

using the simple Keynesian model, explain and diagrammatically represent the change in Y because of each of the following: A. rises in G B. A decline in autonomous consumption Also explain the the Keynesian equilibrating process in both cases (a) and (b)

Use the Keynesian model to explain the procyclical behavior of Use the Keynesian model to explain the procyclical behavior of employment, money, inflation, and investment. Use the Keynesian model to explain the procyclical behavior of

Assume a closed economy: Y=C+I+G In the Keynesian Cross model, as in the slides, assuming the marginal propensity to consume, c1, is less than one, which FOUR of the following statements are correct?     Select one or more: A. The government sends cheques to all taxpayers, worth a total of £1 billion. As long as at least some of this results in higher autonomous consumption, GDP will rise by more than £1 billion. B. A rise in government spending on benefits or other transfers will increase Y by more than the increase in benefits C. If the c1 = 0.75 the multiplier will be 4 D. A fall in autonomous consumption will reduce Y by more than the initial fall E. The government sends cheques to all taxpayers, worth a total of £1billion. As a result, autonomous consumption increases by £0.5 billion. As long as c1 > 0.5, GDP will rise by more than £1 billion F. If consumers seek to save more by reducing their autonomous consumption, c0, this will reduce output.

'Keynesian policies to solve the problem of unemployment will not work because they will conflict with the attainment if other key Macroeconomic aims' Discuss this view in detail.

In the Keynesian framework, which of the following events might cause a recession? Which might causeinflation? Sketch AD/AS diagrams to illustrate your answers.a. A large increase in the price of the homes people own.b. Rapid growth in the economy of a major trading partner.c. The development of a major new technology offers profitable opportunities for business.d. The interest rate rises.e. The good imported from a major trading partner become much less expensive.