According to Keynes,aggregate Demand Could Be Too Low in an Economy.What

question 152

Multiple Choice

According to Keynes,aggregate demand could be too low in an economy.What does this mean?

• A) It means there is not enough purchasing power in the economy to maintain stable prices.
• B) It means there are too many of some goods produced and too few of other goods produced.
• C) It means spending in the economy is too low to bring about full employment.
• D) It means that wages may get stuck in a recessionary gap because there is not enough demand (in the economy)to increase them.
• E) none of the above

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