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Which of the following is incorrect about the Keynesian model shown below? Price Level Ро AD₁ E₁ Y₁ Real GDP SRAS AD E₁ யீ Yp

Which of the following is incorrect about the Keynesian model shown below? Price Level Ро AD₁ E₁ Y₁ Real GDP SRAS AD E₁ யீ Yp

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Which of the following is incorrect about the Keynesian model shown below? Price Level P₁ AD₁ E₁ Y₁ Real GDP SRAS AD E₁ Yp
Transcribed Image Text:Which of the following is incorrect about the Keynesian model shown below? Price Level P₁ AD₁ E₁ Y₁ Real GDP SRAS AD E₁ Yp
O E1 is not an equilibrium point in this model, because there's unemployment O The L-shaped SRAS reflects the presence of sticky prices O The L-shaped SRAS reflects the presence of sticky wages EO is an equilibrium point with full employment
Transcribed Image Text:O E1 is not an equilibrium point in this model, because there's unemployment O The L-shaped SRAS reflects the presence of sticky prices O The L-shaped SRAS reflects the presence of sticky wages EO is an equilibrium point with full employment
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