Keynesian economics:
a. affirms the classical economists' basic premise concerning competitive markets.
b. believes that monopolies and unions tend to be permanent fixtures in our economy and the prices they create tend to be flexible, at least downwardly.
c. emphasizes the possibility that an economy can never be in equilibrium at less than full employment.
d. prefers to emphasize aggregate supply over aggregate demand.
e. believes that unemployment results when aggregate demand is insufficient to reach a full-employment level of real GDP.
e
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A downward shift of the planned expenditure curve resulting from an increase in the price level corresponds to
A) a movement up along the aggregate demand curve. B) a movement down along the aggregate demand curve. C) an increase in aggregate demand. D) a decrease in aggregate demand.
Economists Leigh Linden and Jonah Rockoff researched the effect of the proximity of the residences of registered sex offenders to the values of other homes in the same area and found that the effects of having a sex offender in the neighborhood
A) are widespread and tend to remain unchanged with distance. B) are virtually nonexistent. C) reduce the average home value in the area by 50 percent. D) are highly localized and diminish rapidly with distance.