Question

The aggregate – model is essentially another way of viewing a country’s aggregate – . In this model, the economy is viewed from a – economist’s perspective, and it assumes that in the – , prices are – .

short run

sticky

demand

money

supply

long run

expenditures

flexible

classical

Keynesian

Answer 1

• The aggregate expenditures model is essentially another way of viewing a country's aggregate demand. In this model, the economy is viewed from a economists perspective , and it assumes that in the short run, price's are sticky.
• The aggregate expenditures model shows the total amount of income spent on the purchase of various goods and services by the people by the people of an economy within a given period of time.
• In another terms it is viewed as aggregate demand within an economy during a certain period of time.
• According to this model the prices remain sticky in the short run and do not respond quickly to the changes in the output.