Chapter 24 Homework es for Jafaric ECON 102 E connect ECONOMICS Chapter 24 Homew

Question

Chapter 24 Homework es for Jafaric ECON 102 E connect ECONOMICS Chapter 24 Homework Question 5 (or 15) value 0.33 points Is structural stagnation a Keynesian or a Classical theory? Structural stagnation is purely a Classical theory O Structural stagnation is both a Keynesian and a Classical theory. Structural stagnation is neither a Keynesian nor a Classical theory Structural stagnation is purely a Keynesian theory References eBook & Resources Worksheet Section: The Historical Development of Macro Learning Objective: 24-03 Distinguish a business cycle from structural stagnation. 527-

Explanation / Answer

Answer: Structural Stagnation is both a Keynesian Theory and a Classical Theory.

Explaination:

Structural Stagnation: It means slow growth in the economy of a country. Where is little growth (2%-3%) or no growth and no much development. thus resulting in umemployment and end to savings.

Structural Stagnation is both a Keynasian and Classical Theory as in both these theories a decline in the induced investment (Investments made by business with regards to the demand made in the economy based on the level of production and income) lead to stagantion.

In the Keynesian Theory , Structural Stagnation is maily seen through umemploment in the economy and through the loss of the production of goods and services at its maximum when the economy is efficient., thus leading to loss of investments.

In Classical Theory, Structural Stagnation is mainly seen when there is an end to savings as well as termination in investments.

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