Question

According to Keynes, the economy could stagnate ie, become "stuck") in the status of only an inflationary economy na recessionary economy only a full employment economy. an inflationary.recessionary or a full employment economy Question 2 According to Keynes, the invisible and would automatically move the economy to Full Employment. True Question 3 When the economy is operating at peakefcency with full employment, then it is operating at both full potential income and full potential Expes Question 4

Answer 1

Answer 1:

Option C. According to Keynes, the economy could stagnate in the status of only a full employment economy when the actual output of the economy equals the full employment level of output.

Answer 2:

False. According to Keynes. government intervention is needed to move the economy to its full employment level. Self adjustment through invisible hand is the main feature of Classical Economics.

Answer 3;

True. When the economy is operating st full employment level, it is operating at potential income.