work incentive assignment after question part 2 of 2 completed: 16 of 50 my score: 14.7/50 pts (29.4%) when…

work incentive assignment after question part 2 of 2 completed: 16 of 50 my score: 14.7/50 pts (29.4%) when government spending and net exports are added into the keynesian model a. the 45 - degree curve shifts upward. b. the aggregate expenditures function shifts. c. there is only a movement along the aggregate expenditure curve. d. the slope of the aggregate expenditure function rises. which of the following statements is true concerning the foreign sector in the simple keynesian model? a. exports are not included as expenditures since they are goods that the home nation ships overseas. b. net exports are autonomous. c. imports are not used in the model since they represent the spending on foreign goods by the home countrys citizens and firms. d. exports and imports depend on foreign and domestic incomes.

work incentive assignment after question part 2 of 2 completed: 16 of 50 my score: 14.7/50 pts (29.4%) when government spending and net exports are added into the keynesian model a. the 45 - degree curve shifts upward. b. the aggregate expenditures function shifts. c. there is only a movement along the aggregate expenditure curve. d. the slope of the aggregate expenditure function rises. which of the following statements is true concerning the foreign sector in the simple keynesian model? a. exports are not included as expenditures since they are goods that the home nation ships overseas. b. net exports are autonomous. c. imports are not used in the model since they represent the spending on foreign goods by the home countrys citizens and firms. d. exports and imports depend on foreign and domestic incomes.

Answer

Brief Explanations:

  1. In the Keynesian model, when government spending and net - exports are added, the aggregate expenditures function which is the sum of consumption, investment, government spending and net - exports changes, so it shifts. The 45 - degree line represents equilibrium and doesn't shift due to these changes. A movement along the aggregate expenditure curve occurs due to changes in income, not the addition of government spending and net - exports. The slope of the aggregate expenditure function is related to the marginal propensity to consume and doesn't necessarily rise just because government spending and net - exports are added.
  2. In the simple Keynesian model, net exports are considered autonomous as they are not directly related to the domestic level of income in the short - run. Exports are part of aggregate expenditure as they represent foreign demand for domestic goods. Imports are subtracted from aggregate expenditure as they are domestic spending on foreign goods. Exports and imports do not solely depend on foreign and domestic incomes in the simple Keynesian model, and net exports are treated as autonomous.

Answer:

  1. B. the aggregate expenditures function shifts.
  2. B. Net exports are autonomous.