In the Keynesian Aggregate Expenditure Model,prices Are Assumed to Be

question 181

Multiple Choice

In the Keynesian aggregate expenditure model,prices are assumed to be fixed because:

• A) unemployment is low.
• B) resources are idle (underutilized).
• C) consumption and disposable income are closely related.
• D) the government heavily intervenes in the economy.

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Definitions:

Investment Opportunities

Chances or avenues to allocate resources, such as time, money, or effort, with the expectation of achieving a return or benefit.

Collectivist Culture

A culture that emphasizes the needs and goals of the group over the needs and desires of the individual.

Individual Achievement

Personal accomplishments or success achieved through one's own efforts and skills, measured by personal standards or external recognition.

Attribution Approach

A theory that explores how individuals interpret events and how this relates to their thinking and behavior, particularly how people attribute causes to actions and outcomes.