Keynes thought that one macroeconomic problem is that an economy: a. can be pushed below the equilibrium level of output by fiscal policy. b. always operates at the potential and business cycles are created by government intervention. c. can be pushed away from the potential if prices and wages are flexible. d. can tend toward an equilibrium level of output that is below the potential level. e. will move back to its potential after a business cycle on its own.
Keynes thought that one macroeconomic problem is that an economy: a. can be pushed below the equilibrium level of output by fiscal policy. b. always operates at the potential and business cycles are created by government intervention. c. can be pushed away from the potential if prices and wages are flexible. d. can tend toward an equilibrium level of output that is below the potential level. e. will move back to its potential after a business cycle on its own.
Chapter1: Making Economics Decisions
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Keynes thought that one macroeconomic problem is that an economy:
a. can be pushed below the equilibrium level of output by fiscal policy. b. always operates at the potential and business cycles are created by government intervention. c. can be pushed away from the potential if prices and wages are flexible. d. can tend toward an equilibrium level of output that is below the potential level. e. will move back to its potential after a business cycle on its own.
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