According to the Keynesian View, Capitalism

question 121

Multiple Choice

According to the Keynesian view, capitalism

• A) is a highly productive form of economic organization that works best when government intervention is least.
• B) experiences booms and busts because of the instability of private investment that is driven by fickle changes in business optimism.
• C) experiences booms and busts that are primarily the result of inappropriate monetary policy.
• D) experiences fluctuations in aggregate demand that cannot be controlled with fiscal policy.

---

Definitions:

Time Horizon

The length of time over which an investment or a project is intended or expected to occur.

Price Elasticity

A quantification of the demand elasticity for a good relative to its price alterations.

Price Elasticity

An indicator of the sensitivity of the demand for a product to fluctuations in its price, represented by the percentage change.

Quantity Demanded

The specific amount of a product that buyers are willing to purchase at a given price, holding all other factors constant.