The Keynesian model of aggregate expenditure assumes that
a) individual firms' prices are flexible but the price level is fixed
b) both individual firms' prices and the price level are flexible
c) both individual firms' prices and the price level are fixed
d) individual firms' prices are fixed but the price level is flexible
c) both individual firms' prices and the price level are fixed
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Households in America tend to consume more and more as they grow older
a. True b. False Indicate whether the statement is true or false
In some rural regions of the United States, residents harvest much of their food supplies directly from nature by hunting, fishing, and gathering. With regard to these subsistence activities: a. GDP will overestimate the true value of the nation's production of final goods and services
b. GDP will underestimate the true value of the nation's production of final goods and services only when the income approach is used. c. GDP will correctly estimate the true value of the nation's production of final goods and services. d. GDP will underestimate the true value of the nation's production of final goods and services.