Keynes and his followers believed that capitalism was one economic system that guaranteed full employment. wages and prices in the short run were flexible. the economy could not operate at any level of real Gross Domestic Product (GDP) less than full capacity. there was no guarantee that a capitalist economy would reach a full employment equilibrium.

Q: B Refer to the production possibility graph above. Assume that the economy is in equilibrium at…

A: Production Possibility Curve- is an acronym for PPC. It is also known as Production Possibilities…

Q: Variables typically included in a multivariate supply function (other than the price and quantity of…

A: Disclaimer: Since you have posted questions with multiple sub-parts, we will solve the first three…

Q: John Maynard Keynes spearheaded a new school of macroeconomic theory during the Great Depression.…

A: The objective of the question is to identify the key principles or viewpoints that represent the…

Q: Which of the following economic conditions is most difficult to identify: recovery expansion…

A: Economic condition: It refers to the financial circumstances that allude to the condition of an…

Q: Small investors face higher transaction costs on the financial market because some transaction fees…

A: Fixed costs are those expenses that remain constant regardless of whether production volumes rise or…

Q: A characteristic of centrally planned economies is that ........              the price s relatively…

A: In centrally planned economy government will always interfere in the market.