Keynes believed that small disturbances in the economy would be made even greater by the market mechanism and thus government intervention was required.
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Q118: Table 11.1-Aggregate supply and demand
Q119: Figure 11.2: Q120: Figure 11.3: Q121: According to Keynes,the economy is basically stable Q122: If,at the prevailing price level,the aggregate quantity Q124: One reason why the quantity of real Q125: According to the Classical economists,if people are Q126: Policy levers and external shocks are determinants Q127: One explanation for why the AS curve Q128: For macro equilibrium to occur,aggregate demand must
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