In the Simple Keynesian Model,there Are Three Simplifying Assumptions

question 100

Multiple Choice

In the simple Keynesian model,there are three simplifying assumptions.Among these assumptions is:

• A) the price level is flexible
• B) no foreign sector
• C) the price level is constant until the economy reaches its full-employment level
• D) the money supply always rises
• E) b and c

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Definitions:

Debit Balance

An excess of debits over credits in a ledger account, typically indicating an increase in assets or expenses.

Posting Error

A mistake made during the process of entering or recording financial transactions in the accounting records.

Written Off

The accounting action of declaring that an asset is no longer useful and its value has become zero, often leading to its removal from the balance sheet.

Allowance Account

A contra-asset account used to create an allowance for doubtful accounts, representing receivables that may not be collected.