10 . From a Keynesian point of view, which is more likely to cause a recession: aggregate demand or aggregate supply, and why

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14-03-2022
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10 . From a Keynesian point of view, which is more likely to cause a recession: aggregate demand or aggregate supply, and why

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Parrain Parrain · Answer 1 · 2022-03-28T12:05:07+02:00

According to the Keynesian perspective, the one more likely to cause a recession is Aggregate demand.

Why is Aggregate demand more likely to cause a recession?

Keynes believes that a recession is more likely to occur as a result of aggregate demand.

He posited that a recession could happen when there is insufficient aggregate demand which leads to prices falling thereby creating a recession.

Find out more on Keynesian economics at https://brainly.com/question/14223529.