Asked by
Countless Lewis
on Oct 13, 2024Verified
The Keynesian point of view suggests that
A) supply creates its own demand.
B) demand creates its own supply.
C) the market is always at equilibrium.
D) full employment is the natural result of market forces.
E) wage and price controls can halt deflationary pressures.
Keynesian Point of View
An economic theory suggesting that government intervention through fiscal and monetary policy can mitigate the adverse effects of recessions, depressions, and booms.
Supply and Demand
A fundamental economic model that explains how prices and quantities of goods and services are determined in a market based on the interaction between suppliers and consumers.
Market Equilibrium
This is the condition in a market where the quantity supplied equals the quantity demanded at a certain price level, leading to a stable market situation where there is no tendency for change.
- Distinguish between classical economic doctrines and Keynesian economic principles regarding market balance, job market dynamics, and the role of state involvement.
- Analyze the reasons behind and remedies for economic downturns and depressions.
Verified Answer
JK
Learning Objectives
- Distinguish between classical economic doctrines and Keynesian economic principles regarding market balance, job market dynamics, and the role of state involvement.
- Analyze the reasons behind and remedies for economic downturns and depressions.