If a Keynesian expenditure-output model shows that aggregate demand for both goods and labor has shifted to the left to D1, while wages remained at w0 and prices remained at P0, what will be the result?

A. excess supply
B. natural rate of unemployment
C. coordinated wage reductions
D. depression

The Keynesian expenditure-output model focuses on the total amount of spending in the economy, with no explicit mention of aggregate supply or of the price level. According to my research on this type of model, I can say that based on the information provided within the question the result of these values would lead to an excess amount of supply.

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If a Keynesian expenditure-output model shows that aggregate demand for both goods and labor has shifted to the left to D1, while wages remained at w0 and prices remained at P0, what will be the result? A. excess supply B. natural rate of unemployment C. coordinated wage reductions D. depression

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If a Keynesian expenditure-output model shows that aggregate demand for both goods and labor has shifted to the left to D1, while wages remained at w0 and prices remained at P0, what will be the result?

A. excess supply
B. natural rate of unemployment
C. coordinated wage reductions
D. depression