A Keynesian Model Is One in Which Prices Are Sticky

question 71

Multiple Choice

A Keynesian model is one in which prices are sticky:

• A) in the short run only.
• B) in the short run and in the long run.
• C) in the long run only.
• D) so that they never depend on the money supply.

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Definitions:

Expression

A mathematical phrase that can contain numbers, variables, and operation symbols but does not have an equal sign.

Zero-Factor Property

A rule stating that if the product of two factors equals zero, at least one of the factors must also be zero.

Equation

A statement in mathematics that declares two expressions, often including variables and constants, to be equivalent.

Factor

A number or expression that divides another number or expression evenly, with no remainder.