The Keynesian model of aggregate expenditure assumes that
A) individual firms' prices are fixed but the price level is flexible.
B) both individual firms' prices and the price level are fixed.
C) both individual firms' prices and the price level are flexible.
D) individual firms' prices are flexible but the price level is fixed.
Correct Answer:
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Q5: In the Keynesian model of aggregate expenditure,
Q6: In the Keynesian model of aggregate expenditure,
Q7: The Keynesian model of aggregate expenditure describes
Q8: Disposable income is
A) income plus transfer payments
Q9: Real GDP
A) is always greater then aggregate
Q11: Saving equals
A) disposable income minus taxes.
B) disposable
Q12: Disposable income is equal to
A) aggregate income
Q13: In the very short run, the components
Q14: The four components of aggregate planned expenditure
Q15: An increase in real GDP leads to
A)
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