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C Secure https//bridgew.blackboard.com/webapps/assessment/take/launch.jsp/course assessment id- 79 In the Keynesian cross model, the slope of the aggregale expenditure curve ts the marginal propensity to consume world interest rate Ocapital outflow O investment ratio QUESTION 3 Ceteris panibus, how does expansionary fiscal policy (G increases, T decreases) impact a country's GDP? it decreases it O it increases it O it has no impact on it O its impact is not predictable QUESTION 4 If President Trump succeeds in increasing military spending, then ceteris paribus, we would expect the US economy's output to increase double O decrease be unaffected QUESTION5 The theory that there is a negative relationship between unemplayment and real GDP is called Cliel Save and Submit to save and submit. Click Save All Answers to save all ansvers sylabus 121.doc nsyllabus (1) docExplanation / Answer
2) marginal propensity to consume.
In the Keynesian cross model, aggregate expenditure is a autonomous spending and consumption spending that depends on income which is dependent on marginal propensity to consume.
3) it increases it
Increase in G is an increase in government spending and decrease in T is an increase in consumption spending. These two lead to increase in aggregate spending which results in higher GDP.
4) increase
Increase in military spending is an increase in government spending which leads to increase in aggregate spending. This results in increase in output.
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