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.

---

Definitions:

National War Labor Board

A government agency established during World War I and again during World War II to mediate labor disputes and prevent strikes that could disrupt production in wartime industries.

U.S. Labor Relations

The relationship between workers and employers in the United States, governed by laws and regulations pertaining to collective bargaining, workers' rights, and dispute resolution.

Knights of Labor

A significant labor organization in the late 19th century United States, known for advocating a broad spectrum of reforms to improve the conditions of workers.

Primary Goals

Fundamental objectives or targets that an individual, group, or organization aims to achieve.