How Does the Original, Simplified Keynesian Model Compare with Modern

question 132

Multiple Choice

How does the original, simplified Keynesian model compare with modern Keynesian analysis?

• A) The original Keynesian model assumed price flexibility whereas the modern analysis does not.
• B) In both cases, the short-run aggregate supply curve (SRAS) is horizontal.
• C) Modern analysis shows an upward sloping SRAS to reflect some price flexibility. The original Keynesian model's SRAS is horizontal and assumes sticky prices.
• D) all of the above

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Definitions:

Conjunction of Features

The process in perception involving the integration of multiple stimuli attributes to recognize a pattern.

Visual Search

The process of actively scanning the environment to locate a particular object or feature among other distractors.

Target

An object or goal that a person or system aims to achieve or hit.

Priming Effects

The phenomenon whereby exposure to a stimulus influences a response to a subsequent stimulus, without conscious guidance or intention.