Multiple Choice
According to Keynes, the economy could become stuck at a low income level if:
A) declines in aggregate demand and aggregate supply reinforce one another.
B) declines in aggregate demand are not accompanied by declines in aggregate supply.
C) declines in aggregate supply are not accompanied by declines in aggregate demand.
D) aggregate demand and aggregate supply are independent of one another.
Correct Answer:
Verified
Correct Answer:
Verified
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