According to Keynesian theory, which of the following is not true at each short-term macro equilibrium?

The economy may or may not be at full employment.

The aggregate demand curve intersects the aggregate supply curve.

All macroeconomic goals are achieved.

Producers are selling everything they currently produce.

Question

Zachary Prince

Business

28 January, 04:05

According to Keynesian theory, which of the following is not true at each short-term macro equilibrium?

The economy may or may not be at full employment.

The aggregate demand curve intersects the aggregate supply curve.

All macroeconomic goals are achieved.

Producers are selling everything they currently produce.

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Answers (1)

Know the Answer?

Kara Suarez · Answer 1

All macroeconomic goals are achieved.

Explanation:

All macroeconomic goals should be achieved in the long term macro equilibrium.

On the long term macro equilibrium, real GDP should be equal to potential GDP. This is all theoretical since there is no real possibility that the potential GDP is ever equal to the real GDP. There will always be at least one economic actor that is not being 100% efficient, so potential GDP is unreachable.