The Keynesian economic framework is based on an assumption that:
A. an increase in government spending will cause the aggregate demand curve to shift to the left.
B. prices and wages are sticky and do not adjust rapidly.
C. an increase in government spending will cause the aggregate demand curve to shift to the left.
D. people can afford a high level of government services.
Answer:B
The Keynesian economic framework is based on an assumption that:
A. an increase in government spending will cause the aggregate demand curve to shift to the left. B. prices and wages are sticky and do not adjust rapidly. C. an increase in government spending will cause the aggregate demand curve to shift to the left. D. people can afford a high level of government services.
Explanation: Type: Multiple Choice Category: Remember