A Key Element of Keynesian Analysis Relates To

question 8

Multiple Choice

A key element of Keynesian analysis relates to:

• A) policies to reduce the difference between planned and actual spending and investment
• B) using taxation as a means to influence the interest rate in an economy.
• C) The similarities between short term fluctuations in macroeconomic variables and how they behave in the long run
• D) the distinction between planned spending and investment and actual spending and investment

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Definitions:

Positive Output

Production of goods or services in a quantity that exceeds zero.

Short-Run Cost Function

A mathematical relation describing how production costs change with output levels over a short period, where some inputs are fixed.

Positive Amount

A numerical value greater than zero, indicating a quantity that is present or an action that increases size or quantity.

Price

The cash expenditure required, anticipated, or transmitted in exchange for a good.