Following Keynes' work in explaining the Great Depression, economists started to make a distinction between
A) nominal and real GDP.
B) recessions and booms.
C) positive and normative economics.
D) GDP in the short run and in the long run.

Question

Quizplus · Accepted Answer

Keynes' work emphasized the importance of analyzing the economy in the short run and the long run, leading to a distinction between GDP in the short run (affected by factors like aggregate demand) and GDP in the long run (affected by factors like productivity and potential output). This can be seen as a distinction between two different views of the business cycle and economic growth.

Following Keynes' Work in Explaining the Great Depression, Economists Started