If a Keynesian expenditure-output model shows that aggregate demand for both goods and labor has shifted to the left to D1, while wages remained at w0 and prices remained at P0, what will be the result?
A. excess supply
B. natural rate of unemployment
C. coordinated wage reductions
D. depression
Answer:A
If a Keynesian expenditure-output model shows that aggregate demand for both goods and labor has shifted to the left to D1, while wages remained at w0 and prices remained at P0, what will be the result?
A. excess supply B. natural rate of unemployment C. coordinated wage reductions D. depression
Explanation: Type: Multiple Choice