Within the Keynesian aggregate expenditures model, if the economy is below equilibrium, then there will be:
A) an increase the demand for goods and services.
B) an increase in real GDP.
C) lower interest rates, which will stimulate aggregate demand and keep the economy at full employment.
D) a lower price level, which will quickly guide the economy to full-employment equilibrium.

Question

Quizplus · Accepted Answer

The Answer of Within the Keynesian aggregate expenditures model, if the economy is below equilibrium, then there will be:
A) an increase the demand for goods and services.
B) an increase in real GDP.
C) lower interest rates, which will stimulate aggregate demand and keep the economy at full employment.
D) a lower price level, which will quickly guide the economy to full-employment equilibrium.

Within the Keynesian Aggregate Expenditures Model, If the Economy Is