According to Keynesian economics, prices and wages determine the level of output in the economy.

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According to Keynesian economics, the level of output in the economy is determined by the level of aggregate demand, which is influenced by factors such as government spending and investment. Prices and wages are seen as sticky in the short run and may not adjust quickly enough to changes in demand, leading to periods of unemployment or inflation.

According to Keynesian Economics, Prices and Wages Determine the Level