ECON162 Macroeconomics Essay, In the fixed price Keynesian model

Question ECON 162 Binghamton University Macroeconomics Essay QUESTION 1 1. In the fixed price Keynesian model, an increase in investment spending leads to a. a decrease in saving b. an increase in saving c. a decrease in real GDP d. a multiplied increase in real GDP e. an increase in net exports QUESTION 2 1….

ECON162 Macroeconomic – In the fixed-price Keynesian model

Question ECON 162 Binghamton University Macroeconomic Questions QUESTION 1 1. In the fixed-price Keynesian model a. wages, prices, rents and interest rates are flexible so that markets always clear. b. there is no money illusion. c. wages may be sticky so that involuntary unemployment may exist in labor markets. d. supply creates its own demand….