In the Keynesian aggregate expenditure model, prices are assumed to be fixed because resources are underutilized.

Name: In the Keynesian aggregate expenditure model, prices are assumed to be fixed because resources are underutilized.
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In the Keynesian model, prices are assumed to be fixed in the short run because there is excess capacity and unemployment, meaning resources are underutilized, allowing output to change without affecting prices.

In the Keynesian Aggregate Expenditure Model, Prices Are Assumed to Be