The Difference Between the Keynesian Model and the Aggregate Demand/aggregate

question 144

Multiple Choice

The difference between the Keynesian model and the aggregate demand/aggregate supply (AD/AS) model is that the

• A) Keynesian model assumes that prices are constant.
• B) AD/AS model assumes that prices are constant.
• C) Keynesian model assumes full employment.
• D) AD/AS model assumes that equilibrium always occurs at less than full employment.

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Definitions:

Frequency Distribution

A summary of data showing the number (frequency) of observations in each of several non-overlapping categories or bins.

Cumulative Frequency

A count of the number of occurrences that fall within certain class intervals or categories, accumulated from the beginning of a set of data up to each point.

Ogive

A visual representation of a cumulative frequency distribution.

Line Chart

A chart format that represents data through a sequence of points linked by linear segments, commonly employed to illustrate changes or movements across a temporal span.