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John Maynard Keynes Argued That

Question 125

Multiple Choice

John Maynard Keynes argued that


A) downward nominal-wage rigidity prevented the classical self-correction mechanism from working to end recessions.
B) the automatic forces of the market would restore the economy to full employment very quickly.
C) the classical macroeconomists' argument that government spending should be used in recessions would not eliminate a recession.
D) fluctuations in aggregate supply were the primary causes of recessions.

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