The shapes of the curves in the AS/AD model are based upon the:
A) principle of substitution.
B) principle of opportunity cost.
C) relationship between a single good and its price.
D) relationship between the price level and total output.
Correct Answer:
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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
Q25: As prices fall, the value of people's
Q26: If the price level falls but people
Q27: The paradox of thrift will not arise
Q28: Keynes argued that, for the period that
Q29: The AS/AD model looks similar to the
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