Keynes argued that aggregate demand is
a. stable, because the economy tends to return to its long-run equilibrium quickly after any disturbance to aggregate demand.
b. stable, because changes in consumption are mostly offset by changes in investment and vice versa.
c. unstable, because waves of pessimism and optimism create fluctuations in aggregate demand.
d. unstable, because of long and variable policy lags that worsen economic fluctuations.
c
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Resource X is necessary to the production of good Y. If the price of resource X rises,
A) the supply curve of Y shifts leftward. B) the supply curve of Y shifts rightward. C) the supply curve of Y is unaffected. D) there is a movement down the supply curve of Y. E) there is a movement up the supply curve of Y.
According to 2014 data on the U.S. population, which of the following groups of teenagers (ages 16-19) had the highest unemployment rate?
a. white males b. white females c. black males d. black females