According to Keynes, if the economy is in a deep recession, an increase in aggregate demand will
A. increase real GDP without putting significant upward pressure on the price level.
B. decrease real GDP.
C. increase the price level with no effect on real GDP.
D. increase both real GDP and the price level.
A. increase real GDP without putting significant upward pressure on the price level.
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In the long run, total variable cost is zero
Indicate whether the statement is true or false
Assuming demand is inelastic, if a firm wants to increase its total revenue, it should raise price
Indicate whether the statement is true or false
A flat wage profile refers to
A) wage compression. B) backloaded compensation. C) an efficiency wage. D) deferred compensation.
Monopolistic competitors have _______ rivals who produce _________ goods and services.
A. no; identical B. many; identical C. many; close substitute D. None of the choices are correct.