Which assumption is not made in the Keynesian model of national income and employment determination? A An increase in aggregate demand can increase real national income. B Interest rates move to equalise planned savings and investment. C Investment depends on the expectation of entrepreneurs. D Planned consumption is a function of national income.

In a closed economy with neither government expenditure nor taxation, the initial income is $2000 million. All saving…

Which combination of factors is most likely to result in economic growth?

A country's real national income per head increases. What could explain why this might be accompanied by a fall in ho…

The table shows substitution and income effects for a normal good and for an inferior good as the price of the good c…

A government imposes a $10 tax on each unit produced of a product. How will this affect the firm? A Its average cost …

According to oligopoly theory, what is not likely to characterise the behaviour of firms in the industry? A matching …