The "Naïve" Keynesian Model Is Unrealistic Because It

question 36

Multiple Choice

The "naïve" Keynesian model is unrealistic because it

• A)Does not take into account probable changes in the price level as the economy approaches full employment.
• B)Assumes that the price level decreases as AD increases.
• C)Assumes that AS is upward sloping when it is more probably horizontal.
• D)Does not account for changes in output due to the multiplier.

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