6. During the expansion phase of the business cycle, unemployment rates typically a. Decrease b. Increase c. Are unchanged d. All of the above 7. In the Keynesian aggregate expenditures model, investment demand is modeled as a function of a. Disposable income b. The real interest rate c. The real exchange rate d. The level of investment is set by policy 8. What is the equilibrating force in the Keynesian cross model? a. Interest rate adjustments b. Exchange rate adjustments c. Price level adjustments d. Inventory adjustments