Question: Which statement is correct? Select the best answer. Answer Keyboard S A shift of the aggregate demand curve to the left in both Keynesian and
Which statement is correct? Select the best answer. Answer Keyboard S A shift of the aggregate demand curve to the left in both Keynesian and intermediate zones will not affect the price level. Keynes's law states that supply creates its own demand, which can be illustrated by the AD/AS model. A shift of the aggregate demand curve to the right can increase the level of output in the Keynesian zone and the price level in the neoclassical zone
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
