Business, 04.05.2021 03:40, wedderman2583

In the Keynesian conception of the AD/AS model: An increase in AD can expand real output and employment without causing much inflation. An increase in AD can expand real output and employment without causing much inflation. An increase in AD can expand real output and employment only by causing a great deal of inflation. An increase in AD can expand real output and employment only by causing a great deal of inflation. A decrease in AD can reduce inflation substantially but causes unemployment. A decrease in AD can reduce inflation substantially but causes unemployment. Changes in AD and changes in the price level are inversely related. Changes in AD and changes in the price level are inversely related. The only effective fiscal policy is to increase aggregate supply.

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In the Keynesian conception of the AD/AS model: An increase in AD can expand real output and employm...