Which of the following is a key insight or tenet of the Keynesian school of economic thought?
Wages and prices can be sticky downwards, meaning the economy can remain in a persistent equilibrium below full employment.
Inflation is always and everywhere a monetary phenomenon caused by an excessive expansion of the money supply.
Decentralized price signals are the only mechanism capable of coordinating subjective individual preferences.
Markets will always rapidly self-correct to the natural rate of output through flexible wage adjustments.
