An important distinction between the classical and Keynes's view of the economy is that
A) Keynes stressed the supply side of an economy while classical economists stressed the demand side of the economy.
B) classical economists argued that output gaps were caused by shifts in the long-run aggregate supply while Keynes' maintained that output gaps were created by shifts in aggregate demand.
C) Keynes stressed the demand side of an economy while classical economists stressed the supply side of the economy.
D) classical economists argued that output gaps were caused by shifts in the long-run aggregate supply while Keynes' maintained that output gaps were created by wage and price rigidities.
Correct Answer:
Verified
Q5: The body of economic thought associated with
Q6: During the Great Depression, investment plummeted because
A)
Q7: Early classical macroeconomics was based largely on
Q10: Which of the following factors contributed to
Q11: Classical economists believed
I. there could be temporary
Q15: Prior to the Great Depression, the dominant
Q17: Prior to the Great Depression of the
Q18: David Ricardo focused on the economy in
Q19: Who was the economist who laid the
Q48: The General Theory of Employment, Interest, and
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents