The Keynesian AD Curve Differs from the Classical AD Curve

question 29

Multiple Choice

The Keynesian AD curve differs from the classical AD curve in that:

• A)the classical AD curve can shift in response to non-monetary shocks.
• B)the Keynesian AD curve can shift in response to monetary shocks.
• C)the Keynesian AD curve can shift in response to non-monetary shocks.
• D)there is no difference,both are determined by the quantity theory.
• E)none of the above.

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Definitions:

Induction

A reasoning process that moves from specific instances to a general conclusion, often used in scientific and logical arguments.

Deduction

A logical process in which a conclusion is based on the concordance of multiple premises that are generally assumed to be true.

General

A term used broadly to describe something that applies to all or most cases or situations without being specific.

Specific

Clearly defined or identified; distinct from others.