According to Keynesian theory: A. The long-run and short-run aggregate supply curves are identical. B. A decrease

Fantastic news! We've Found the answer you've been seeking!

Question:

According to Keynesian theory:
A. The long-run and short-run aggregate supply curves are identical.
B. A decrease in aggregate demand leads to decreases in output and prices in the short-run.
C. A decrease in aggregate demand will decrease prices, but not output in the short-run.
D. The short run is relatively unimportant.
E. An economic recession will self-correct without policy intervention.