16) One of the determinants of investment is the current level of capital goods.

False

True

17) The 45-degree line in the Keynesian model represents

AE=I.

AE=Y.

AE=C.

AE=G.

24) As income increases, consumption

increases at a slower rate.

decreases at a slower rate.

decreases faster.

increases faster.

26) Which of these would NOT cause a shift in the aggregate demand curve?

an increase in the expected rate of inflation

a stock market crash

a reduction in raw material prices

a decrease in real interest rates

29) Which of these would NOT cause a shift in the short-run aggregate supply curve?

a major technological advancement

a decrease in real interest rates

an increase in resource prices

a decrease in the expected rate of inflation