Keynesian economics:

A. affirms the classical economists' basic premise concerning competitive markets.
B. believes that monopolies and unions tend to be permanent fixtures in our economy and the prices they create tend to be flexible, at least downwardly.
C. emphasizes the possibility that an economy can never be in equilibrium at less than full employment.
D. believes that unemployment results when aggregate demand is insufficient to reach a full-employment level of real GDP.


Answer: D

Economics

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What will be an ideal response?

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