An Important Distinction Between the Classical and Keynesian View of the Economy

question 100

Multiple Choice

An important distinction between the classical and Keynesian view of the economy is that

• A) Keynes stressed the supply side of an economy while classical economists stressed the demand side of the economy.
• B) classical economists argued that output gaps were caused by shifts in the long-run aggregate supply while Keynes' maintained that output gaps were created by shifts in aggregate demand.
• C) Keynes stressed the demand side of an economy while classical economists stressed the supply side of the economy.
• D) classical economists argued that output gaps were caused by shifts in the long-run aggregate supply while Keynes' maintained that output gaps were created by wage and price rigidities.

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Definitions:

Musculoskeletal System

The organ system that includes bones, muscles, cartilage, tendons, ligaments, and other connective tissues, supporting and enabling body movements.

Potassium Hydroxide

A strong alkaline compound, often used in manufacturing and as a cleaning agent.

Caustic Potash

Also known as potassium hydroxide, a strong base used in various industrial and chemical processes.

Acid Base

Refers to the concepts of acid and base balance in biological systems, essential for maintaining homeostasis.