The key assumption of the basic Keynesian model is that
A) planned aggregate expenditure is autonomous.
B) actual investment equals planned investment.
C) planned aggregate expenditure is constant.
D) short-run equilibrium output equals potential output.
E) firms meet demand at preset prices.
Correct Answer:
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Q5: Total planned spending on final goods and
Q6: The basic Keynesian model assumes that,in the
Q7: The basic Keynesian model explains how the
Q8: In the basic Keynesian model,all of the
Q9: The only component of planned aggregate expenditure
Q11: The largest component of planned aggregate expenditure
Q12: All of the following would be included
Q13: The decision whether to change prices frequently,or
Q14: Firms do not change prices frequently because
A)
Q15: The basic Keynesian model assumes that,in the
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