Keynesian Model

3 important questions on Keynesian Model

What are 'PRESET PRICES'?

Firms typically maintain fixed prices and adjust production to meet demand.

Why do firms use preset prices?

Constantly changing prices is costly and inconvenient due to MENU COSTS.

What are examples of MENU COSTS?

Examples include determining new prices and updating systems and menus.

The question on the page originate from the summary of the following study material:

  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo