Solved

Which of the Following Statements About the Keynesian View of the Macroeconomy

Question 121

Multiple Choice

Which of the following statements about the Keynesian view of the macroeconomy is incorrect?


A) Technological change is the most significant influence on both aggregate demand and aggregate supply.
B) To achieve and maintain full employment, active help from fiscal policy and monetary policy is required.
C) Expectations are based on "animal spirits."
D) The money wage rate is extremely sticky in the downward direction so there is no automatic mechanism for eliminating a recessionary gap.
E) Expectations are the most significant influence on aggregate demand.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents