According to John Maynard Keynes, why does the economy sometimes reach equilibrium at a level of income below the full employment level?
A) Because the demand for investment is inelastic with respect to interest rates
B) Because prices and wages are inflexible downward
C) Because aggregate demand does not shift in response to changes in government spending
D) Because aggregate demand does not shift in response to changes in investment spending
Correct Answer:
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Q49: Which of the following will decrease when
Q50: Which one of the following statements is
Q51: The demand for investment
A) is upward-sloping.
B) depicts
Q52: What would likely happen to investment demand
Q53: A decrease in interest rates will
A) shift
Q55: Investment spending is
A) equal to real income.
B)
Q56: What is the result when planned spending
Q57: What is the result when planned spending
Q58: If the marginal propensity to consume is
Q59: By saying that the size of the
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