Asked by
Angel Michalski
on Oct 13, 2024Verified
Which of the following is not an aspect of Keynesian economics?
A) Wages and prices tend to be inflexible downward.
B) Supply does not necessarily generate its own demand.
C) Saving depends directly upon the level of income.
D) Unemployment is a temporary phenomenon.
Keynesian Economics
A theory that advocates for increased government expenditures and lower taxes to stimulate demand and pull the global economy out of depression.
Downward Rigidity
A situation in economics where wages or prices are resistant to decrease even in conditions where they logically should, such as during a recession.
- Acquire knowledge of how Keynesian economics supports macroeconomic equilibrium through governmental measures and the application of monetary strategies.
- Identify the outcomes of implementing Keynesian economic strategies on managing recessions and depressions.
Verified Answer
MR
Learning Objectives
- Acquire knowledge of how Keynesian economics supports macroeconomic equilibrium through governmental measures and the application of monetary strategies.
- Identify the outcomes of implementing Keynesian economic strategies on managing recessions and depressions.