The Difference Between the Keynesian Model and the Aggregate Demand/aggregate

question 144

Multiple Choice

The difference between the Keynesian model and the aggregate demand/aggregate supply (AD/AS) model is that the

• A) Keynesian model assumes that prices are constant.
• B) AD/AS model assumes that prices are constant.
• C) Keynesian model assumes full employment.
• D) AD/AS model assumes that equilibrium always occurs at less than full employment.

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Definitions:

Urban Sprawl

The uncontrolled expansion of urban areas into the surrounding countryside, often criticized for environmental and social reasons.

Megacities

Extremely large cities, typically with a population of over 10 million people, often facing unique social, economic, and environmental challenges.

Public Water

Public water refers to the supply of water provided by government or municipal bodies to communities for drinking, washing, and other domestic purposes.