Which statement(s) is/are TRUE about Keynes's simple model of the economy? I. The aggregate price level is fixed.
II) All savings are considered to be personal savings.
III) There is considerable slack in the economy.
A) I only
B) II only
C) III only
D) I, II, and III

Question

Quizplus · Accepted Answer

Keynes's simple model of the economy assumes a fixed aggregate price level, treats all savings as personal savings, and posits that there is considerable slack in the economy, meaning resources, especially labor, are not fully utilized.

Which Statement(s) Is/are TRUE About Keynes's Simple Model of the Economy