According to Keynesian theory,which of the following is not true at each short-term macro equilibrium?
A)The economy may or may not be at full employment.
B)The aggregate demand curve intersects the aggregate supply curve.
C)All macroeconomic goals are achieved.
D)Producers are selling everything they currently produce.

Question

Quizplus · Accepted Answer

Keynesian theory does not guarantee that all macroeconomic goals are achieved at each short-term macro equilibrium. Instead, it emphasizes that government intervention may be necessary to achieve certain goals, such as full employment and price stability.

According to Keynesian Theory,which of the Following Is Not True