In the Keynesian Model of Aggregate Expenditure, We Assume That

question 260

Multiple Choice

In the Keynesian model of aggregate expenditure, we assume that firms will

• A) not change prices.
• B) change prices only when inventory levels rise.
• C) raise prices when inventory levels fall.
• D) change prices immediately after a fluctuation in aggregate demand, to maintain profits.

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Definitions:

Loan Applications

The process by which an individual, business, or organization requests to borrow money from a financial institution.

Initial Public Offering

The first time a company offers its shares to the public for purchase, marking a private company's transition to a public company.

NYSE

The New York Stock Exchange, one of the largest securities exchanges in the world, where stocks are bought and sold.

Brokerage Firm

A company that acts as an intermediary between buyers and sellers in investment transactions.