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Economists who advocate the Keynesian theory of economics would say that prices and wages are sticky and decreases in AD will decrease employment.

Economists who advocate the Keynesian theory of economics would say that prices and wages are

sticky and decreases in AD will decrease employment. sticky and decreases in AD will decrease unemployment. flexible and decreases in AD will decrease employment. flexible and decreases in AD will decrease unemployment. flexible and increases in AD will increase unemployment.


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 flexible and increases... View the full answer

2 comments
  • r u sure?
    • cool234
    • May 08, 2016 at 10:54am
  • As aggregate demand decreases unemployment decreases since consumers arent spending, which loses revenues for companies
    • Toptutor112
    • May 08, 2016 at 11:02am

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