The Keynesian aggregate expenditure model best describes the economy in the ________ run when prices are ________.
A) long; fixed
B) short; variable
C) long; variable
D) short; fixed

Question

Quizplus · Accepted Answer

The Keynesian aggregate expenditure model is most applicable in the short run when prices are fixed, as it assumes that output is determined by aggregate demand without price level changes.

The Keynesian Aggregate Expenditure Model Best Describes the Economy in the ________