In the Keynesian Aggregate Expenditure Model, Which Variable Is Assumed

question 37

Multiple Choice

In the Keynesian aggregate expenditure model, which variable is assumed to be fixed?

• A) GDP
• B) consumption
• C) unemployment
• D) the price level

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Definitions:

Option Contract

A financial contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price within a certain period.

Right

In finance, the prerogative to buy or sell a security under specific conditions, often associated with options.

Specific Asset

An identifiable and tangible asset owned by a company, often critical to its operations or unique in nature, usually with specific investment criteria.

Swap Contract

A swap contract is a financial derivative agreement between two parties to exchange sequences of cash flows for a set period of time.