Unlike in the Long-Run Model, in the Short-Run Keynesian Model

question 101

Multiple Choice

Unlike in the long-run model, in the short-run Keynesian model, we make two critical assumptions: that firms adjust production depending on _______, and that _______.

• A) total demand; prices are fixed
• B) resource limitations; prices are flexible
• C) the market rate of interest; consumers maximize utility
• D) consumer spending; there is full employment

---

Definitions:

Model Year

A reference to the marketed annual iterative period in which a vehicle or product is sold under a particular designation differing from the calendar year.

Bargaining Position

The leverage or advantage one party has in negotiations, influenced by factors such as information, alternatives, and urgency.

Sequential Game

A strategic game where players make decisions one after another, with each player typically informed of the previous players' decisions before making their own.

Shopkeeper

An individual who owns or manages a small retail business.