According to Keynesian Economics, If There Are Unutilized Resources in the Economy

question 65

Multiple Choice

According to Keynesian economics, if there are unutilized resources in the economy and aggregate demand increases

• A) real GDP will rise and price level will remain constant.
• B) real GDP will fall and price level will remain constant.
• C) real GDP will rise and price level will rise.
• D) real GDP will rise and price level will fall.

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Definitions:

International Transactions

Financial operations that occur across national borders, involving the exchange of goods, services, or capital between countries.

Intermediary

An entity or person that acts as a mediator or link between parties to facilitate a transaction or agreement.