Using the Keynesian Aggregate Expenditures Model, Which of the Following

question 140

Multiple Choice

Using the Keynesian aggregate expenditures model, which of the following is true?

• A)Macro equilibrium may occur at levels of real GDP other than full-employment real GDP.
• B)At any macro equilibrium, the actual rate of unemployment must equal the natural rate of unemployment.
• C)If an economy is operating below full employment capacity, the Keynesian model indicates that lower wage rates will automatically adjust the economy back to full employment.
• D)All of these are correct.