A group of modern economists who believe that institutional factors and confidence strongly influence business behaviour and that expanding demand will usually increase output rather than prices are the ?
Correct answer: C. post-keynesians
- A. monetarists.
- B. keynesians
- C. post-keynesians
- D. new classical school
Explanation
Post-Keynesians emphasise uncertainty, confidence, institutions and the role of effective demand in determining output and employment. They generally argue that stronger demand can raise real output, especially when the economy has spare capacity, rather than only raising prices.
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