Question

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.

Answer 1

Answer:

flexible and increases in AD will increase unemployment.

Explanation:

Keynesian economics can be regarded as macroeconomic theory that base on effects of total spending in the economy as well as its effects on inflation, output and employment. With regards to this theory, Keynes serve as advocate that speak that about increased government expenditures as well as lower taxes in order to stimulate demand as well as saving the global economy from depression.

It should be noted that Economists who advocate the Keynesian theory of economics would say that flexible and increases in AD will increase unemployment.