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Which of the following represents a Keynesian point of view of macroeconomics?

A. focus on long-term growth in the economy
B. aggregate supply is the primary determinate of economic output
C. creating increases in aggregate demand to reduce unemployment
D. vertical aggregate supply

Respuesta :

The answer would have to be d

The Keynesian view of macroeconomics is that of C. creating increases in aggregate demand to reduce unemployment

Keynes and his followers believe that increasing aggregate demand can lead to unemployment being reduced because:

  • More demand means companies will have to build more facilities to meet demand
  • These facilities would require workers which would reduce the unemployment rate

Keynesian economists therefore advocate for measures such as investment and government spending as ways of reducing unemployment as they boost aggregate demand.

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