Keynesians:
A)accept the countercyclical policy of doing nothing, that is, allowing market forces to work.
B)believe that the level of aggregate demand in the 1930s was sufficient to generate full employment.
C)accept the fact that policymakers should eliminate inflation first before focusing on unemployment.
D)focus on increasing aggregate demand in order to stimulate the economy.
E)were prepared for the events that beset our economy in the 1970s and 1980s.

Question

Quizplus · Accepted Answer

Keynesians focus on increasing aggregate demand to stimulate the economy, especially during periods of economic downturn, as they believe that insufficient demand leads to unemployment and underutilized resources.