Which of the following is not an aspect of Keynesian economics?
A) Wages and prices tend to be inflexible downward.
B) Supply does not necessarily generate its own demand.
C) The interest rate is important in determining the level of investment,but not as important as other variables.
D) Unemployment above natural unemployment is always a brief and temporary phenomenon.

Question

Quizplus · Accepted Answer

Keynesian economics does not assume that unemployment above natural unemployment is brief and temporary. In fact, Keynesian economics emphasizes the role of government intervention to address long-term unemployment and promote full employment.

Which of the Following Is Not an Aspect of Keynesian