Multiple Choice
The basic Keynesian model is built on the key assumption that:
A) menu costs are not significant.
B) firms meet the demand for their products at preset prices.
C) firms price their products so as to see a preset quantity of output.
D) prices are prevented from changing frequently by government regulations.The basic Keynesian model assumes prices are fixed in the short run.
Correct Answer:
Verified
Correct Answer:
Verified
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