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In the Very Short Term, in the Keynesian Model, Which

question 135

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In the very short term, in the Keynesian model, which of the following is fixed and does not change when GDP changes?


Definitions:

Deadweight Loss

Economic inefficiency resulting when the market equilibrium for a good or a service is not achieved.

Social Cost

The total cost to society, including both private costs and any external costs, from producing or consuming a good or service.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total net benefit to society.

Social Welfare

A set of government programs aimed at providing support to the needy in society, ensuring a minimum standard of living and protection against economic risks.

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