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Keynesian economics focuses on explaining why recessions and depressions occur and offering a policy prescription for minimizing their effects. The Keynesian view of recession is based on two key building blocks: recessions occur when the level of household and business sector demand for goods and services is less than what is produced and when AD fluctuated, prices and wages did not immediately respond as economists expected ("sticky, prices and wages",
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- Knovation Readability Score: 4 (1 low difficulty, 5 high difficulty)