The Simple Keynesian Model Assumes That

question 347

Multiple Choice

The simple Keynesian model assumes that

• A) gross private domestic investment exceeds net investment by the capital consumption allowance.
• B) prices, especially the price of wages, are "sticky downward."
• C) there will never be any excess capacity in the short run.
• D) aggregate demand will always equal aggregate supply.

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Portions of land that are next to each other or sharing a common boundary.

Irrigation Pump

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The agricultural process of cultivating the cotton plant, which is harvested for its fibers, used in textile production.

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