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tensa zangetsu [6.8K]
3 years ago
11

In the simple Keynesian model, there are three simplifying assumptions. Among these assumptions is: __________

Business
1 answer:
polet [3.4K]3 years ago
8 0

Answer: B and C

No foreign sector

The price level is constant until the economy reaches its full-employment level

Explanation:

Keynesian economics refers to the theory that relates to total spending in the economy and how it affects output, Inflation and employment in the economy.

Assumptions of the Keynesian Model include:

• No foreign sector as economy is closed.

• Demand creates its own supply.

• The aggregate price level is fixed. ...

• The price level is constant until the economy reaches its full-employment level

• No retained earnings etc.

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