In analyzing recessions,Keynes' view was that
A) the economy may eventually recover by itself,but it takes too long.
B) the government could stimulate aggregate purchases by reducing the budget deficit.
C) the economy will never recover because wages and prices will never adjust downward.
D) any cyclical unemployment will be short-lived,and thus there is no need for increased government spending.
Correct Answer:
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Q112: It is _ that in the classical
Q113: The long-run aggregate supply curve is
A)upward sloping.
B)horizontal.
C)downward
Q114: The line segment RS describes the region
Q115: According to classical macroeconomic theory,the flexible interest
Q116: If aggregate demand increases and as a
Q118: According to the Keynesian model,
A)aggregate demand plays
Q119: The line segment ST describes the region
Q120: Macroeconomic equilibrium occurs when
A)the quantity of output
Q121: When the price level falls
A)aggregate demand shifts
Q122: According to Keynesian economists,the key limitation on
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