Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

Which statement would be linked to Keynesian economic theory?

  • AA change in the money supply is the main determinant of the rate of inflation.
  • BWhen unemployment falls below its natural rate, there is upward pressure on prices.
  • CTotal spending in the economy affects real output and employment in the short run.
  • DWages and prices are flexible so output and employment will always return to its equilibrium rate.

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