Multiple Choice
In the fixed-price Keynesian model, what would be the impact of an increase in aggregate expenditure on the aggregate demand curve and real GDP?
A) The aggregate demand curve would shift rightward and real GDP would increase.
B) The aggregate demand curve would shift leftward and real GDP would decrease.
C) The aggregate demand curve would shift rightward and real GDP would decrease.
D) The aggregate demand curve would shift leftward and real GDP would increase.
E) The aggregate demand curve and real GDP would both remain constant.
Correct Answer:

Verified
Correct Answer:
Verified
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