Keynes assumed that the price level is _____ when the economy has slack, and that the time period of focus is the:
A) fixed; short run.
B) variable; long run.
C) fixed; long run.
D) variable; short run.

Question

Quizplus · Accepted Answer

Keynes assumed that the price level is fixed when the economy has slack, indicating underutilized resources, and his theories primarily focus on the short run, where immediate economic adjustments and policies can have significant impacts.

Keynes Assumed That the Price Level Is _____ When the Economy