The Keynesian aggregate expenditure model focuses on changes in
A) the price level.
B) real GDP.
C) potential GDP.
D) the SAS curve.

Question

Quizplus · Accepted Answer

The Keynesian aggregate expenditure model focuses on changes in real GDP. It examines the relationship between aggregate expenditures on goods and services and the level of real GDP, assuming a fixed price level. The model states that changes in aggregate expenditures will lead to changes in real GDP, with the magnitude of the change depending on the multiplier effect.

The Keynesian Aggregate Expenditure Model Focuses on Changes in