Multiple Choice
The "naïve" Keynesian model is unrealistic because it
A) Does not take into account probable changes in the price level as the economy approaches full employment.
B) Assumes that the price level decreases as AD increases.
C) Assumes that AS is upward sloping when it is more probably horizontal.
D) Does not account for changes in output due to the multiplier.
Correct Answer:
Verified
Correct Answer:
Verified
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