The short-run model makes use of the , which assumes that private consumption expenditure is sensitive to changes in current income.

When examining the causes of unemployment, Keynes focused on

A) financial markets. B) inflationary expectations. C) changes in technology. D) aggregate demand.

In a competitive labor market, the demand for labor X that produces product Y will increase if the demand for product Y increases

a. True b. False Indicate whether the statement is true or false