Which of the following does not impact aggregate demand in the Keynesian model?
A)Changes in the supply of labor
B)Net exports
C)Household consumption
D)Desired business investment demand
E)Government purchases of goods and services

Question

Quizplus · Accepted Answer

In the Keynesian model, changes in the supply of labor generally do not directly impact aggregate demand. Aggregate demand is determined by the level of consumption, investment, government spending, and net exports. While changes in the supply of labor may indirectly affect these factors, they do not directly affect aggregate demand in the way that the other options listed do.

Which of the Following Does Not Impact Aggregate Demand in the Keynesian