The simple Keynesian model assumes that

A) gross private domestic investment exceeds net investment by the capital consumption allowance.
B) prices, especially the price of wages, are "sticky downward."
C) there will never be any excess capacity in the short run.
D) aggregate demand will always equal aggregate supply.

B

Economics

You might also like to view...

One desirable outcome of a market economy is that it leads to a more equitable distribution of income

Indicate whether the statement is true or false

Economics

Three forces played a significant role in preparing Indian policy makers for economic reform. Describe them

What will be an ideal response?

Economics