In the Keynesian model of aggregate expenditure, we assume that firms will
A. not change prices.
B. change prices only when inventory levels rise.
C. raise prices when inventory levels fall.
D. lower prices when inventory levels rise.
Answer:A
In the Keynesian model of aggregate expenditure, we assume that firms will
A. not change prices. B. change prices only when inventory levels rise. C. raise prices when inventory levels fall. D. lower prices when inventory levels rise.