The Keynesian explanation of the business cycle rests on several concepts, including
A) the desire of politicians to be re-elected.
B) rigid money wage rates.
C) unstable monetary policy by the Fed.
D) shocks to the rate of technological change.

Question

Quizplus · Accepted Answer

The Keynesian explanation of the business cycle rests on the concept of rigid money wage rates, which cause changes in aggregate demand to result in changes in employment and output rather than prices.

The Keynesian Explanation of the Business Cycle Rests on Several