A key component of the Keynesian model is that

A) people are not fooled by money illusion. B) prices are flexible.
C) prices are sticky. D) wages are flexible.

C

Economics

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An increase in the growth rate of nominal GDP would be displayed in our model as:

A. a parallel shift of the AD curve outward. B. the AD curve becoming steeper. C. a parallel shift of the AD curve inward. D. the AD curve becoming flatter.

Economics

When rent controls establish a legal maximum rental rate below the equilibrium rental rate

A) quantity demanded exceeds quantity supplied. B) quantity supplied exceeds quantity demanded. C) demand exceeds supply. D) supply exceeds demand.

Economics