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In the Keynesian Model,supply Adjusts Passively to Demand in the Short

Question 43

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In the Keynesian model,supply adjusts passively to demand in the short run because


A) of Say's law.
B) the equilibrium level of output automatically adjusts to the full-employment level.
C) actual saving equals actual investment at all times.
D) both consumption and investment respond to changes in interest rates when the aggregate supply curve is vertical.
E) high levels of unemployment keep wages and prices stable.

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