1.Which of the following is NOT true about government spending as function of national income?

A) Government spending appears as a horizontal line on the Keynesian cross diagram.

B) Federal, state and local governments determine the level of government spending through the budget process.

C) Aggregate expenditures would shift upward if government spending increased.

D) Government spending will fluctuate.

2.The income-expenditure model illustrates imbalances or inefficiency in ?

A) government Spending

B) price levels

C) net exports

D) levels of output or national income