If interest rates,prices,and output are all rising,then according to the Keynesian model,these changes must be caused by
A)an increase in aggregate supply.
B)a shift to the right of the LM curve
C)a shift to the right of the LM curve.
D)a shift up in the IS curve.
E)none of the above.

Question

Quizplus · Accepted Answer

In the Keynesian model, if interest rates, prices, and output are all rising, this scenario is typically associated with an increase in aggregate demand, which can be represented by a shift up in the IS curve. This shift indicates higher demand for goods and services, leading to increased output and prices, and higher demand for money, which leads to higher interest rates.

If Interest Rates,prices,and Output Are All Rising,then According to the Keynesian