Consumption: ; . The output produced by the economy is 800. The level of unplanned inventories is
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4 marks, −1MacroeconomicsKeynesian cross and the multiplierKeynesian cross equilibriumModerateabout 1 min
CUET-PG 2022 Question 59: Keynesian cross and the multiplier
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Consumption: C = 100 + 0.8Y; I = 50. The output produced by the economy is 800. The level of unplanned inventories is (A) 100 (B) 10 (C) -10 (D) 150
Keynesian cross and the multiplier has come up 167 times in 7 exams since 2006.
What this question tests
This question is on Keynesian cross equilibrium, part of Keynesian cross and the multiplier in Macroeconomics.
How income is determined when output adjusts to planned spending, and what happens to unplanned inventories.
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