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Which of the Following Is True of Simple Keynesian Model

Question 6

Multiple Choice

Which of the following is true of Simple Keynesian model?


A) Price level increases with an increase in aggregate demand.
B) The aggregate supply curve is assumed to be perfectly inelastic.
C) The aggregate demand curve is assumed to be perfectly elastic.
D) Price level is solely determined by the aggregate demand curve.
E) Changes in aggregate demand determines equilibrium real GDP.

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