The Keynesian model of aggregate expenditure assumes that
A. individual firmsʹ prices are flexible but the price level is fixed.
B. both individual firmsʹ prices and the price level are flexible.
C. both individual firmsʹ prices and the price level are fixed.
D. individual firmsʹ prices are fixed but the price level is flexible.
Answer:C
The Keynesian model of aggregate expenditure assumes that
A. individual firmsʹ prices are flexible but the price level is fixed. B. both individual firmsʹ prices and the price level are flexible. C. both individual firmsʹ prices and the price level are fixed. D. individual firmsʹ prices are fixed but the price level is flexible.