In regard to describing how the economy functions, Keynesian economists claim that more focus should be...
In regard to describing how the economy functions, Keynesian economists claim that
more focus should be placed on the long run than the short run.
prices are sticky.
savings is crucial to growth.
the market tends toward stability and full employment.
the economy does not need help in moving back to full employment.
Homework Answers
Answer
Option 1
prices are sticky
the prices can not change as fast as the economic dynamics so the prices are sticky in the short run.
The focus should be on the short run as the long run is not in hand of policies mostly.
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In regard to describing how the economy functions, Keynesian
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