According to John Maynard Keynes

question 21

Multiple Choice

According to John Maynard Keynes:

• A) aggregate expenditures (demand) can be forever inadequate to achieve full employment.
• B) aggregate output (supply) can be forever inadequate to achieve full employment.
• C) the economy would automatically adjust to full employment in the long run.
• D) neither aggregate demand nor aggregate supply is a determinant of full-employment real GDP.

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Definitions:

Social Facilitation Theory

Social facilitation theory posits that the presence of others significantly impacts an individual's performance, enhancing it on familiar or simple tasks but potentially impairing it on complex or new tasks.

Earned Income

Income generated from the sale of goods or services by an organization, as distinct from donations or grants.

Liability

A legal responsibility or obligation, often in financial terms, that a person or entity has to another.

Business Risk

The exposure to factors that may cause a business to experience lower profits or financial loss, including market competition, regulatory changes, and operational failures.