There is currently a resurgence in Keynesian macroeconomics,based on the assumptions of market ________ and ________ expectations.
A)non-clearing,adaptive
B)non-clearing,rational
C)clearing,adaptive
D)clearing,rational

Question

Quizplus · Accepted Answer

Keynesian macroeconomics is based on the assumption of non-clearing markets, where prices and wages do not adjust to achieve equilibrium, and rational expectations, where individuals form expectations based on all available information. This combination allows for the possibility of market failures and the need for government intervention to stabilize the economy.

There Is Currently a Resurgence in Keynesian Macroeconomics,based on the Assumptions