In the Fixed-Price Keynesian Model, What Would Be the Impact

question 39

Multiple Choice

In the fixed-price Keynesian model, what would be the impact of an increase in aggregate expenditure on the aggregate demand curve and real GDP?

• A)The aggregate demand curve would shift rightward and real GDP would increase.
• B)The aggregate demand curve would shift leftward and real GDP would decrease.
• C)The aggregate demand curve would shift rightward and real GDP would decrease.
• D)The aggregate demand curve would shift leftward and real GDP would increase.
• E)The aggregate demand curve and real GDP would both remain constant.

---

Definitions:

Political Party

An organized group of people with similar political aims and opinions, that seeks to influence public policy by getting its candidates elected.

Governmental Regulations

Laws and rules established by government agencies that dictate business practices, standards, and behaviors.

Socio-Cultural

Referring to the social and cultural dimensions or factors that influence an individual's behavior, values, and perceptions.

Technological

Relating to or involving technology, especially in the context of new and innovative digital or electronic devices.