Discuss the role of the price level and interest rates in the simple model of aggregate demand developed in this chapter.How do Keynesians justify this behavior?
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Q2: If the government wishes to increase its
Q3: In the Keynesian model,exogenous variables include
A)planned investment.
B)taxes.
C)planned
Q4: Compared to the closed economy Keynesian model,the
Q5: If a fall in investment demand of
Q6: Assume that a government increases both government
Q8: If the marginal propensity to save is
Q9: The short-run refers to a period
A)of a
Q10: If the marginal propensity to consume is
Q11: In the equation Y = (1/1 -
Q12: Using the simple Keynesian model,consider the case
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