In the Keynesian aggregate supply curve case,
A)firms will always supply the amount of goods demanded at the existing price level
B)consumers will demand whatever is supplied by firms at each price
C)the economy is always at full employment
D)unemployment is always at its natural rate
E)none of the above

Question

Quizplus · Accepted Answer

In the Keynesian model, firms are willing to supply any amount of goods at the existing price level, especially when there is idle capacity and unemployment, as prices are sticky in the short run.

In the Keynesian Aggregate Supply Curve Case