In the Keynesian Model Which Includes the Keynesian Short-Run Aggregate

question 129

Multiple Choice

In the Keynesian model which includes the Keynesian short-run aggregate supply curve

• A) an increase in aggregate demand would causes the price level to rise, but does not change the level of real GDP.
• B) an increase in aggregate demand causes real GDP to rise without changing the price level.
• C) an increase in aggregate demand changes neither the price level nor the level of real GDP.
• D) an increase in aggregate demand causes real GDP and the price level to decrease.

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