Question

A basic conclusion of Keynesian analysis is that:

Small macro disturbances can lead to much larger macro problems.
The economy self adjusts to reach full employment and a stable price level.
Equilibrium GDP is consistent with full employment.
Equilibrium GDP is consistent with price level stability.

Answer 1

Answer:

Small macro disturbances can lead to much larger macro problems.

Explanation:

The Keynesian analysis depends entirely on demand. It is a simple analysis that shows that if a firm produces something and firm tries to price that product. it brings changes in gross demand directly and effects into converts GDP.

So we can say that even small disturbances can lead to big problems.