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:

Concrete Operational

A stage in Piaget’s theory of cognitive development (roughly ages 7 to 11) during which children gain the ability to think logically about concrete events.

Analytic

Pertaining to or resulting from the process of breaking down complex information or problems into simpler parts for better understanding or resolution.

Abstract

Pertaining to ideas, concepts, or qualities not associated with specific objects or events and not having physical existence.

Logical Thinking

The process of reasoning consistently and sensibly, using a structured and methodical approach to analyze and solve problems.