The Simple Keynesian Model Assumes That

question 347

Multiple Choice

The simple Keynesian model assumes that

• A) gross private domestic investment exceeds net investment by the capital consumption allowance.
• B) prices, especially the price of wages, are "sticky downward."
• C) there will never be any excess capacity in the short run.
• D) aggregate demand will always equal aggregate supply.

---

Definitions:

Layoff Cost

The expenses associated with reducing an organization's workforce, encompassing severance pay, benefits continuation, and potential legal costs.

Hiring And Training Cost

Expenses associated with recruiting new employees and providing them with the necessary skills and knowledge for their role.

Labor Hours

The total number of hours worked by employees, used as a measure of labor input in the production of goods and services.

Inventory Holding Cost

The total cost associated with storing and managing inventory over a certain period, including warehousing, insurance, depreciation, and obsolescence costs.