According to the Keynesian theory, the typical firm
A) lowers its prices if sales exceed production.
B) does not change its prices immediately when aggregate demand fluctuates.
C) lowers its prices when inventories are decreasing.
D) changes its prices frequently in response to fluctuations in aggregate demand.
Correct Answer:
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Q2: The consumption function relates the consumption expenditure
Q3: Disposable income is divided into
A) consumption, saving,
Q4: In the Keynesian model of aggregate expenditure,
Q5: If firms set prices and then keep
Q6: In the very short run, the components
Q7: Disposable income is
A) income minus taxes plus
Q8: The consumption function relates consumption expenditure to
A)
Q9: The Keynesian model of aggregate expenditure describes
Q10: A consumption function shows a
A) negative inverse)
Q11: Saving equals
A) disposable income minus consumption expenditure.
B)
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