According to Keynesian theory,which of the following is not true at each short-term macro equilibrium?
A)The economy may or may not be at full employment.
B)The aggregate demand curve intersects the aggregate supply curve.
C)All macroeconomic goals are achieved.
D)Producers are selling everything they currently produce.

Question

Quizplus · Accepted Answer

According to Keynesian theory, short-term macro equilibrium only ensures that the aggregate demand curve intersects the aggregate supply curve, but it does not guarantee that all macroeconomic goals, such as full employment, price stability, and economic growth are achieved. Therefore, option C is not true at each short-term macro equilibrium.

According to Keynesian Theory,which of the Following Is Not True