The order for the chain of events for the Keynesian model is for a change in to lead to a change in__________ , which is then multiplied resulting in___________a change in __________.
A) business confidence; investment; real GDP
B) investment; animal spirits; the price level
C) the Fedʹs intermediate targets; the Fedʹs goals; real GDP
D) real GDP; income; consumption

Question

Quizplus · Accepted Answer

According to the Keynesian model, a change in business confidence leads to a change in investment, which is then multiplied resulting in a change in real GDP.

The Order for the Chain of Events for the Keynesian