Asked by
Spencer Brought
on Oct 13, 2024Verified
According to Keynes,if the economy is in a deep recession,an increase in aggregate demand will
A) increase real GDP without putting significant upward pressure on the price level.
B) decrease real GDP.
C) increase the price level with no effect on real GDP.
D) increase both real GDP and the price level.
Deep Recession
An exceptionally severe period of economic decline characterized by a significant decrease in economic activity across multiple sectors of the economy.
Real GDP
Gross Domestic Product adjusted for inflation, which reflects the value of all goods and services produced by an economy in a given year in real terms.
- Understand the conditions for macroeconomic equilibrium and the role of government intervention according to Keynes.
Verified Answer
RR
Learning Objectives
- Understand the conditions for macroeconomic equilibrium and the role of government intervention according to Keynes.