Consider the following statements regarding Keynesian economics:

  1. Keynesian economics emphasizes the role of aggregate demand in determining the level of economic activity.
  2. According to Keynes, government intervention is necessary to manage economic fluctuations.
  3. Keynesian theory suggests that supply creates its own demand.

Which of the above statements are correct?

1
1 only
2
1 and 2 only
3
2 and 3 only
4
1 and 3 only
5
1, 2, and 3

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