Which one of the following statements is true? In the pre-Keynesian era, prices were assumed not to fully adjust. In the Keynesian model diagram, prices are fixed. GDP is a value of goods and services domestically produced in a country at a given point in time. Say's Law says that demand creates its own production. In the IS/LM model, the interest rate is a function of investment.

Answered: Which one of the following statements…

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter10: Keynesian Macroeconomics And Economic Instability: A Critique Of The Self Regulating Economy

Section: Chapter Questions

Problem 20QP

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Which one of the following statements is true?

		In the pre-Keynesian era, prices were assumed not to fully adjust.
		In the Keynesian model diagram, prices are fixed.
		GDP is a value of goods and services domestically produced in a country at a given point in time.
		Say's Law says that demand creates its own production.
		In the IS/LM model, the interest rate is a function of investment.

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