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Keynesian Economists Believe That the Economy Is Unstable and Tends

Question 123

Multiple Choice

Keynesian economists believe that the economy is unstable and tends toward cyclical unemployment because


A) the long run is more important than the short run,and economic policy works only in the long run.
B) prices are flexible and allow the economy to quickly return to full employment.
C) supply is more important than demand in determining economic growth and output.
D) savings is a crucial part of economic growth and investment.
E) prices are sticky and prevent the economy from adjusting to full employment.

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