Based on the Belief That Prices Are Sticky and Inflexible,Keynesian

question 110

Multiple Choice

Based on the belief that prices are sticky and inflexible,Keynesian economists conclude that

• A) the economy is self-correcting and tends toward full employment.
• B) savings is a crucial component of economic growth.
• C) the long run deserves more focus than the short run.
• D) the economy is not self-correcting and can become stuck below full employment.
• E) government intervention is never necessary to promote full employment.

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Definitions:

William James

A pioneering American philosopher and psychologist in the late 19th and early 20th centuries, known for his contributions to functionalism and pragmatism in psychology.

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