The Difference Between the Keynesian Model and the Aggregate Demand/aggregate

Multiple Choice

The difference between the Keynesian model and the aggregate demand/aggregate supply (AD/AS) model is that the

A) Keynesian model assumes that prices are constant.
B) AD/AS model assumes that prices are constant.
C) Keynesian model assumes full employment.
D) AD/AS model assumes that equilibrium always occurs at less than full employment.