"The economy can be in equilibrium,with aggregate supply equal to aggregate demand,at a level substantially below the full employment level of output." This statement best describes the views of

Question

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The statement suggests that the economy can be in equilibrium but not at full employment level of output, which is a Keynesian perspective. Classical economists believe that the economy will naturally reach full employment equilibrium, and therefore, this statement does not align with their views.

"The Economy Can Be in Equilibrium,with Aggregate Supply Equal to Aggregate