Extreme Keynesians believe that all markets adjust instantly, leading to a clearing equilibrium.

Name: Extreme Keynesians believe that all markets adjust instantly, leading to a clearing equilibrium.
Brand: Quizplus
Rating: 4.7 (43 reviews)

Question

Quizplus · Accepted Answer

Extreme Keynesians actually believe that markets can experience sticky prices and wages, leading to a situation where the economy can remain stuck in an inefficient equilibrium for a significant amount of time.

Extreme Keynesians Believe That All Markets Adjust Instantly, Leading to a Clearing