Keynes' motivation in developing the aggregate output determination model originated from his concern with explaining _______________.a.the hyperinflations of the 1920s.b.why the Great Depression occurred.c.the high unemployment in Great Britain before World War I.d.the high unemployment in Great Britain after World War II.Clear my choice

Keynes argued that the sum of the components that comprise aggregate demand _________________.a.could add up to an output smaller than the economy is capable of producing, thus resulting in less than full employmentb.could add up to an output greater than the economy is capable of producing, thus resulting in less than full employmentc.always equaled the output the economy is capable of producingd.equaled the output the economy is capable of producing by definitionClear my choice

Keynesian economics could not be used to explainMultiple choice question.hyperinflation.stagflation.minimum wage laws.the Great Depression.

in the 1930s, when keynes was alive, a expansionary fiscal policy, taking everything else constant, would have led (in the short-run) to________a relative large increase in y, a smaller increase in pa relative large increase in p, a smaller increase in yboth y and p increasing with an percentageonly y increased

In his theory, Keynes believed that one of the reasons wages might not fall isGroup of answer choicesinefficient wage models.long tern labor contracts.the demand for workers does not change.the supply of workers does not change.

48.Keynesian economists believe that in the short run, changes in aggregate demand can lead to fluctuations in:  A. Long-run economic growth  B. Potential output  C. Inflation only  D. Unemployment and output levels