The Keynesian Aggregate Expenditures Model Assumes That

question 16

Multiple Choice

The Keynesian aggregate expenditures model assumes that:

• A)production does not adjust to changes in aggregate expenditures.
• B)aggregate supply is autonomous.
• C)prices do not decrease when aggregate demand decreases.
• D)aggregate supply determines the equilibrium level of real GDP.
• E)prices are positively related to aggregate demand.

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