Which of the following statements does NOT reflect Keynesian ideas? a) If someone wants to help the economy get out of a recession, those individuals should increase their spending. b) Government policy should focus on counteracting short-run fluctuations in the economy. c) Government policy should intervene during a recession because the economy cannot correct itself. d) Wages and prices are inflexible ('sticky') in the downward direction.
Added by Jennifer G.
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Keynes believed that during a recession, individuals should increase their spending to stimulate demand and boost economic activity. b) This statement also reflects Keynesian ideas. Keynes believed that government policy should focus on stabilizing the economy Show more…
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