Keynesian and new Keynesian economics focus on the relationship between total output and:
A) price levels.
B) total spending.
C) unemployment.
D) the money supply.

Question

Quizplus · Accepted Answer

Keynesian and new Keynesian economics emphasize the importance of total spending (or aggregate demand) in determining the level of total output in the economy. They argue that changes in aggregate demand can lead to significant fluctuations in output and employment.

Keynesian and New Keynesian Economics Focus on the Relationship Between