When the economy is in the Keynesian range,an increase in aggregate demand will
A) increase the price level and have no effect on real national output.
B) increase the real national output and have no effect on the price level.
C) increase both real output and the price level.
D) increase the price level and decrease the real national output.
Correct Answer:
Verified
Q125: John Maynard Keynes argued that
A)downward nominal-wage rigidity
Q126: In the Keynesian analysis of macroeconomic equilibrium,the
Q127: When real GDP is in equilibrium there
Q128: An equilibrium level of real GDP is
Q129: A curve showing the amount of real
Q131: In the horizontal range of the AS
Q132: Which of the following is not part
Q133: In the intermediate range the aggregate supply
Q134: The classical long-run aggregate supply curve is
A)vertical
Q135: An aggregate demand curve shows how
A)the quantity
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