Which of These Is a Central Argument of Keynes's General

question 50

Multiple Choice

Which of these is a central argument of Keynes's General Theory?

• A)Competition does not allocate resources efficiently in a modern industrial economy.
• B)Full employment can be maintained even during a major recession if wage rates are lowered far enough.
• C)Modern industrial economies do not tend automatically toward full employment rates of output.
• D)Money does not play an important role in either causing or curing recession.
• E)Government can best stabilize the economy by letting the market system automatically adjust toward full employment.

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Definitions:

Cash Collection

The process of receiving and processing payments from customers, typically impacting the business’s liquidity.

Unearned Revenues

Income received by an individual or company for a service or product that has yet to be provided or delivered.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of assets, provision of services, or other means.

Net Income

The total earnings of a company after deducting all expenses and taxes from total revenue.