Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Which statement describes the focus of the Keynesian model? While focusing on the short-run adjustments of aggregate demand, Keynesian economics is also able to focus

Which statement describes the focus of the Keynesian model?

While focusing on the short-run adjustments of aggregate demand, Keynesian economics is also able to focus on the the long-term causes of economic growth or the natural rate of unemployment that exists even when the economy is producing at potential GDP.

By focusing on the short-run adjustments of aggregate demand, Keynesian economics risks overlooking the long-term causes of economic growth but not the natural rate of unemployment that exists even when the economy is producing at potential GDP.

By focusing on the short-run adjustments of aggregate demand, Keynesian economics risks overlooking the long-term natural rate of unemployment, but not the causes of economic growth that exists even when the economy is producing at potential GDP.

By focusing on the short-run adjustments of aggregate demand, Keynesian economics risks overlooking the long-term causes of economic growth or the natural rate of unemployment that exists even when the economy is producing at potential GDP.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Algebra advanced algebra with financial applications

Authors: Robert K. Gerver

1st edition

978-1285444857, 128544485X, 978-0357229101, 035722910X, 978-0538449670

Students also viewed these Economics questions

Question

Avoid evasiveness. Be direct with your answers when possible.

Answered: 1 week ago