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What is the underlying assumption for the Keynesian economic framework?
Which of the following assumptions is based on a Keynesian economic framework?
a. The aggregate demand curve can be shifted to the left through an increase in government spending.
b. Changes in aggregate demand prices do not cause wages and prices to quickly adjust because they are both sticky.
c. A large increase in government services is affordable to the tax base.
In the Keynesian framework, we assume that in the long-run prices are sticky. True or False.