Question

According to keynesianism, as more items are being made, what happens to prices?

A. the prices increase
B. the prices are taxed at a higher rate
C. the prices decrease
D. the prices stay the same

Answer 1

According to keynesianism, as more items are being made, what happens to prices D. the prices stay the same

Step-by-step explanation:

Keynes advocated that an increased government expenditures and lower taxes can stimulate demand and it can pull the global economy out of the depression.

Keynesians believe that, because prices are somewhat rigid, fluctuations in any component of spending like consumption, investment, or government expenditure will cause the output to change. If government spending increases, for example, and all other spending components remain constant, then output will increase.

According to keynesianism, as more items are being made, what happens to prices D. the prices stay the same

Answer 2

As more items are being made, the price increase

Step-by-step explanation:

According to keynesianism, the theory mainly talks about the increasing the economic value.

The economic value gets increased when there are more buyer and seller. So there will be more buyer and seller only if the market is active.

The market will be active if the product is in demand. So hence the productivity of product increases when the demand for that product increases and when the demand increase automatically the price gets increased and thus the economic value gets boosted up.