Answer to Question #322383 in Macroeconomics for KGAO

Question

In the simplest possible Keynesian macroeconomic model …

a. government is important in distributing social grants.

b. households consume products sold in the goods market.

c. the labour market plays an important role.

d. social grants help people have income to spend on consumption goods like taxi rides.

e. wages are flexible.

Answer 1

In the simplest possible Keynesian macroeconomic model households consume products sold in the goods market.

So, the correct answer is b.