In principle, we would expect the aggregate demand curve to be vertical because the price level is a reference point, the actual value of which should not matter.
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Q13: Keynes believed the economy was:
A)fluctuating around potential
Q14: Keynes believed equilibrium income was:
A)not fixed at
Q15: Starting from a long-run equilibrium, an increase
Q16: According to the Keynesian model,
A)wages are flexible
Q17: The repercussions that the money wealth and
Q19: Keynes believed that:
A)the government could not aid
Q20: According to Keynes, the economy could become
Q21: Keynes believed that an increase in savings
Q22: An increase in real money balances resulting
Q23: An increase in the price level:
A)increases the
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