question archive 1)According to Keynesian theory, which of the following is not true at all short-term macro equilibria? a
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1)According to Keynesian theory, which of the following is not true at all short-term macro equilibria?
a. The economy may or may not be at full employment,
b. The aggregate demand curve intersects the aggregate supply curve,
c. All macroeconomic goals are achieved,
d. Producers are selling everything they currently produce.
1)The correct answer is c. All macroeconomic goals are achieved
This is the correct answer because all the macroeconomic goals are not achieved in the short-run macro equilibrium. The major macroeconomic goals are economic stability, full employment level and the economic growth. In the short-run, some of the economic variables are fixed and they behave according to the economic changes. The short-run equilibrium is achieved according to the behaviour of these variables which may not be equal to the long-run equilibrium. The factors are adjusted and get back to the equilibrium level in the long-run only. In the long-run, the economy is at the full employment level and achieves highest economic growth with economic stability.