Use the Following Graph to Answer the Following Questions

question 146

Multiple Choice

Use the following graph to answer the following questions.The graph depicts an economy where aggregate demand has decreased.Note that long-run aggregate supply remains changed.

-In regard to describing how the economy functions,Keynesian economists claim that

• A) more focus should be placed on the long run than the short run.
• B) prices are sticky.
• C) savings is crucial to growth.
• D) the market tends toward stability and full employment.
• E) the economy does not need help in moving back to full employment.

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Definitions:

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