loping short-run ag x myHACCedu - Portal Tell Practice Exam - ECON-201.VIC X + O O d) people are not willing and able to buy all output, inventories increase, and firms decrease production and employment. O d) a recessionary gap will emerge and output will increase. Question 17 (1 point) Saved In The General Theory of Employment, Interest and Money, John Maynard Keynes argued that: (al the Great Depression was primarily a result of falling prices and wages. O b) the Civil War illustrated that it is necessary for the national government to actively manage a market economy. O c) a market economy may settle at an equilibrium below full employment in the short run. d) a market economy will automatically eliminate recessionary and inflationary gap through shifts in AD and move toward equilibrium at full employment. Question 18 (1 point) Use the information in the table below to answer the following