The Keynesian Short-Run Aggregate Supply Curve in the Simplified Keynesian

question 173

Multiple Choice

The Keynesian short-run aggregate supply curve in the simplified Keynesian model is unrealistic because

• A) a vertical curve does not make economic sense.
• B) prices and wages will never decrease.
• C) the classical model is better in explaining how the economy operates.
• D) some price adjustments do take place in the short run.

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Definitions:

Self-Defeating Behaviors

Actions or habits that undermine one's own success or well-being, often due to negative self-beliefs.

Short-Term Goals

Objectives set to be achieved in the near future, often serving as stepping stones towards long-term goals.

Long-Term Goals

Objectives or targets that are planned to be achieved over an extended period, typically months or years into the future.

Transtheoretical Model

A theory of behavior change that assesses an individual's readiness to act on a new healthier behavior and provides strategies, or processes of change to guide the individual.