In Developing His Macroeconomic Theory, Keynes

question 115

Multiple Choice

In developing his macroeconomic theory, Keynes

• A) focused primarily on how potential GDP can change over time.
• B) focused on how fiscal policy can change potential output.
• C) was concerned with output gaps and how they could be eliminated.
• D) was primarily concerned with the supply-side of the economy and how producer behavior led to output gaps.

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Definitions:

Liver

A vital organ in the body responsible for detoxification, protein synthesis, and the production of biochemicals necessary for digestion.

Pharmacokinetics

The study of what the body does to drugs: how the body absorbs, metabolizes, distributes, and excretes the drugs.

Metabolism

The complex set of life-sustaining chemical reactions in organisms that enable them to grow, reproduce, maintain their structures, and respond to their environments.

Pharmacognosy

The study of characteristics of natural drugs and their sources.