Question

According to Keynes, market economies may recover slowly after they experience a significant decline in aggregate demand are constantly experiencing significant declines in aggregate demand never experience significant declines in aggregate demand quickly recover after they experience a significant decline in aggregate demand

Answer 1

The correct answer is this one: "may recover slowly after they experience a significant decline in aggregate demand." According to Keynes, market economies may recover slowly after they experience a significant decline in aggregate demand. Aggregate demand or the domestic final demand (DFD) is the total demand for final goods and services in an economy at a given time.