Multiple Choice
The manipulation of spending to influence aggregate demand was first put forward because:
A) the classical view of flexible prices and wages did not necessarily hold in reality.
B) unemployment often remained stubbornly high for too long during and after a
Depression.
C) inflation was extremely high during the Great Depression.
D) the classical view of flexible prices and wages did not necessarily hold in reality and unemployment often remained stubbornly high for too long during and after a
Depression.
Correct Answer:

Verified
Correct Answer:
Verified
Q2: According to Keynes, what is the most
Q2: The classical economists believe that prices and
Q3: Keynes's macroeconomic theory explains that by shifting
Q6: According to the net-exports effect, as the
Q7: Narrbegin Exhibit 14.2 Aggregate demand and supply
Q8: The marginal propensity to consume (MPC) is
Q9: Which of the following will shift the
Q10: The fraction of each added dollar of
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