Keynes's theory of macroeconomics rejects classical macroeconomists' assumptions that
A) prices and wages are flexible.
B) all investment comes from saving.
C) self-correction takes a long time.
D) equilibrium can be achieved below full employment.

Question

Quizplus · Accepted Answer

Keynes's theory argues that prices and wages are not always flexible, which can lead to prolonged periods of unemployment and economic disequilibrium, contrasting with classical economists who believe in flexible prices and wages.

Keynes's Theory of Macroeconomics Rejects Classical Macroeconomists' Assumptions That