According to Keynes,aggregate demand could be too low in an economy.What does this mean?
A) It means there is not enough purchasing power in the economy to maintain stable prices.
B) It means there are too many of some goods produced and too few of other goods produced.
C) It means spending in the economy is too low to bring about full employment.
D) It means that wages may get stuck in a recessionary gap because there is not enough demand (in the economy)to increase them.
E) none of the above

Question

Quizplus · Accepted Answer

According to Keynes, if aggregate demand is too low, it means that spending in the economy is too low to bring about full employment. This results in a recessionary gap where there is unused productive capacity and high unemployment. Keynesian economics suggests that government intervention through fiscal policy can help boost aggregate demand and bring the economy back to full employment.

According to Keynes,aggregate Demand Could Be Too Low in an Economy.What