Which of the Following Is True of the Simple Keynesian

question 23

Multiple Choice

Which of the following is true of the simple Keynesian model?

• A)Price level increases with increase in aggregate demand
• B)The aggregate supply curve is assumed to be perfectly inelastic
• C)The aggregate demand curve is assumed to perfectly elastic
• D)Price level is solely determined by the aggregate demand curve
• E)Changes in aggregate demand determine equilibrium real GDP

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Definitions:

Income and Loss Ratio

Usually referred to as the "loss ratio" in insurance, it is a metric that compares losses (claims paid and adjustment expenses) to premiums earned.

Capital Account

The capital account in accounting represents where all transactions involving the purchase and sale of capital assets are recorded, often reflecting the net worth of a business.

Liquidating

The process of converting assets into cash, often referring to the sale of assets during the winding down or closure of a business.

Noncash Assets

Assets that are not in the form of cash or easily convertible into cash, such as real estate, equipment, and patents.