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Keynesian Economists Believe That More Focus Should Be Placed on Aggregate

Question 128

Multiple Choice

Keynesian economists believe that more focus should be placed on aggregate demand than aggregate supply because


A) savings is a crucial part of economic growth and investment.
B) prices are flexible and allow the economy to quickly return to full employment.
C) governments can promote full employment by stimulating aggregate demand.
D) the long run is more important than the short run,and economic policy works only in the long run.
E) the economy tends to be stable and at full employment.

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