Keynesian Economics

Multiple Choice

Keynesian economics:

A) affirms the classical economists' basic premise concerning competitive markets.
B) believes that monopolies and unions tend to be permanent fixtures in our economy and the prices they create tend to be flexible, at least downwardly.
C) emphasizes the possibility that an economy can never be in equilibrium at less than full employment.
D) prefers to emphasize aggregate supply over aggregate demand.
E) believes that unemployment results when aggregate demand is insufficient to reach a full-employment level of real GDP.