Which of the Following Statements Is True About Keynes' Macroeconomic

question 19

Multiple Choice

Which of the following statements is true about Keynes' macroeconomic theory?

• A) Keynes agreed that the notion that the economy would achieve the potential level of output in the long run is crucial to explaining prolonged recessions.
• B) Keynes dismissed the notion that the economy would achieve full employment in the long run as irrelevant in explaining prolonged recessions.
• C) Keynes stressed the notion that the economy would achieve price stability in the long run only if expansionary fiscal and monetary policies were used to address recessions.
• D) Keynes argued that the economy would achieve full employment in the long run because of wage and price flexibility.

Calculate the operating cycle based on inventory, accounts payable, and cash cycle periods.

Understand the effects of different financial policies on a firm's liquidity and cash management.

Identify the appropriate financing options for specific business scenarios.

Differentiate between operating cycle, cash cycle, and their components.

---

Definitions:

Eutrophication

The process by which a body of water becomes overly enriched with minerals and nutrients, leading to excessive growth of algae and depletion of oxygen.

Acid Deposition

The settling of acidic components from the atmosphere onto the earth's surface, often as rain, snow, or dust, with potential harmful effects on ecosystems, structures, and health.

Climate Change

Recent changes in the Earth’s climate; evidence suggests that this is primarily due to human influence, including the increased release of greenhouse gases.

Organic Chemicals

Compounds containing carbon that are found in or produced by living organisms.