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.

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Definitions:

Absenteeism

The habitual non-presence of an employee at their job, which can be due to various reasons including illness, personal issues, or disengagement.

Kohlberg's Model

A theory proposed by Lawrence Kohlberg that outlines the stages of moral development in individuals.

Moral Development

The process through which individuals acquire and understand values, ethics, and principles that guide their behavior towards what is considered right or wrong.

Preconventional

A stage in moral development characterized by an individual's obedience to rules based on external consequences rather than internalized values or principles.