Suppose that a rise in business confidence has led to more investment in the economy and higher levels of output. In the short-run, Keynesian analysis says the rise in aggregate demand will while the neoclassical model predicts in the long-run. g

Keynesian economic theory

Explanation: Keynesian analysis says the rise in aggregate demand will ___boost growth Keynesians believe consumer demand is the primary driving force in an economy. while the neoclassical model predicts looked at labor contracts as sources of wage stickiness to generate equilibrium models of unemployment. in the long run.

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