Which of the following statements is not a characteristic of the Keynesian approach to the determination of output and employment?
1
It emphasizes the role of aggregate demand in influencing output and employment levels.
2
It argues that wages and prices are flexible and always adjust to ensure full employment.
3
It suggests that government intervention is necessary to manage economic fluctuations.
4
It focuses on the short-run dynamics of the economy rather than long-run equilibrium.
5
It posits that unemployment can persist due to insufficient aggregate demand.