In the Keynesian Model Which Includes the Keynesian Short-Run Aggregate

question 129

Multiple Choice

In the Keynesian model which includes the Keynesian short-run aggregate supply curve

• A) an increase in aggregate demand would causes the price level to rise, but does not change the level of real GDP.
• B) an increase in aggregate demand causes real GDP to rise without changing the price level.
• C) an increase in aggregate demand changes neither the price level nor the level of real GDP.
• D) an increase in aggregate demand causes real GDP and the price level to decrease.

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Definitions:

Airflow

The movement of air around or through a specific space, often related to ventilation or aerodynamics.

Bronchial Trees

The network of airways in the lungs, including the trachea, bronchi, and bronchioles.

Alveoli

Little vesicles in the lungs responsible for the transfer of oxygen and carbon dioxide.

Cartilage

A firm, flexible connective tissue found in various forms in the human body such as joints, rib cage, and ear structure.