Read the two statements and choose the correct option.
I. Macroeconomics assumes that the economy always stays at full employment.
II. Keynes argued that aggregate demand could be too low to employ all workers.

Only ICorrect answerYour answerOnly IICorrect answerYour answerBoth I and IICorrect answerYour answerNeither I nor IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

Keynesian macroeconomics starts from the fact that unemployment can last, so I is false.
II is Keynes's central idea.

Ten questions from Basic Concepts & the Circular Flow, at your own pace.

Ten questions from Basic Concepts & the Circular Flow, at your own pace.

Read the two statements and choose the correct option.I. Macroeconomics assumes that the economy always stays at full employment.II. Keynes argued that aggregate demand could be too low to employ all workers.