Among the propositions of the Keynesian school of thought is
A) economic policies are ineffective.
B) aggregate supply management is the key to a stable economy.
C) aggregate demand determines equilibrium output.
D) rational expectations.

Question

Quizplus · Accepted Answer

The Keynesian school of thought holds that aggregate demand determines equilibrium output. This means that economic policies aimed at increasing aggregate demand are necessary to stabilize the economy. The other options are not consistent with Keynesian theory.

Among the Propositions of the Keynesian School of Thought Is