Keynesian Analysis Implies That Potential Output and Price Stability Can

question 97

Multiple Choice

Keynesian analysis implies that potential output and price stability can be achieved if

• A) the federal budget is balanced annually.
• B) marginal tax rates are kept low so the incentive to produce will be strong.
• C) aggregate demand is equal to the economy's full-employment rate of output.
• D) current saving exceeds the level of investment.

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Definitions:

Transferable Interest

A stake or share in a property or enterprise that can be legally transferred from one party to another.

Dissolution

The process of legally dissolving a corporation or partnership, effectively bringing its existence to an end.

RUPA

Refers to the Revised Uniform Partnership Act, which is a set of laws adopted by some U.S. states to govern the formation, operation, and dissolution of partnerships.

Duty Of Loyalty

The legal obligation of individuals, such as corporate directors or employees, to act in the best interests of their company or employer.