In the Fixed-Price Keynesian Model, What Would Be the Impact

question 39

Multiple Choice

In the fixed-price Keynesian model, what would be the impact of an increase in aggregate expenditure on the aggregate demand curve and real GDP?

• A)The aggregate demand curve would shift rightward and real GDP would increase.
• B)The aggregate demand curve would shift leftward and real GDP would decrease.
• C)The aggregate demand curve would shift rightward and real GDP would decrease.
• D)The aggregate demand curve would shift leftward and real GDP would increase.
• E)The aggregate demand curve and real GDP would both remain constant.