According to Keynes,lengthy Recessions Can Occur Because

question 17

Multiple Choice

According to Keynes,lengthy recessions can occur because

• A)nominal wages fall rapidly when there is a decrease in aggregate demand,which leaves workers with less income to spend.
• B)the stock market tends to overreact to economic forecasts.
• C)there is significant downward rigidity in prices and wages.
• D)None of the choices are correct.

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Definitions:

Policies and Laws

Established rules and guidelines, formally enforced through legal and governmental institutions, that govern behavior within a society.

Class Conflict

The tension or antagonism that exists in society due to competing socioeconomic interests and desires between people of different classes.

Resistance to Democracy

Opposition or reluctance towards adopting democratic principles, systems, or practices within a society or government.

Democratic Freedom

The freedom that allows individuals to participate fully in the political life of their community or country, including rights such as voting and free expression.