Deadweight loss is
a. the reduction in sales revenue resulting from market distortions.
b. the reduction in economic surplus resulting from a market not being in competitive equilibrium.
c. the reduction in consumer expenditure resulting from market failure.
d. a measure of market equity.

Answer the questions about keynesian theory, market economics, and government policy. keynes believed that there were "sticky" wages and that recessions are caused by increases in prices. decreases in supply. decreases in aggregate demand (ad). increases in unemployment. keynes believed the government should increase ad through increased government spending, but not tax cuts. control wages to increase employment because of sticky wages. increase employment through tax cuts only. increase as through tax cuts. increase ad through either increased government spending or tax cuts. intervene when individual markets fail by controlling prices and production.