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Chapter 11 - Classical and Keynesian Economics

1

The classical economists believed that if savings were greater than investment, this would be only temporary because the interest rate would .
2

The classical economists believed that if there were unemployment, this would be just temporary because wages would .
3

Keynes was most concerned with one main variable -- .
4

As potential real GDP is approached, the aggregate supply curve becomes (more and more) .
5

According to Keynes, if the economy is in a deep recession, an increase in aggregate demand will raise without putting significant upward pressure on .







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