Multiple Choice
In the Keynesian model, prices and nominal wages are _____, the short-run aggregate supply curve is upward sloping, and as a result, an increase in the money supply leads to _____ in the aggregate price level.
A) sticky; a less than proportional decrease
B) flexible; a proportional decrease
C) sticky; a less than proportional increase
D) flexible; a proportional increase
Correct Answer:
Verified
Correct Answer:
Verified
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