Keynes Attempted to Explain

question 6

Multiple Choice

Keynes attempted to explain:

• A)short-run economic fluctuations and advocated policies to increase aggregate supply
• B)short-run economic fluctuations and advocated policies to increase aggregate demand
• C)long-run economic growth and advocated policies to increase aggregate demand
• D)long-run economic growth and advocated policies to increase aggregate supply

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Definitions:

Opportunity Costs

Refers to the benefits or gains a person or organization misses out on when choosing one alternative over another.

Consumer Goods

Products bought and used by consumers rather than by manufacturers for producing other goods.

Capital Goods

Long-term assets used in the production of goods and services, such as machinery, buildings, and equipment.

Consumer Goods

Products that are bought for consumption by the average consumer.