Prior to the Time of John Maynard Keynes, Most Economists

question 42

Multiple Choice

Prior to the time of John Maynard Keynes, most economists stressed that

• A) low levels of aggregate demand would lead to prolonged periods of unemployment.
• B) market economies were inherently unstable because of fluctuating aggregate demand.
• C) market adjustments would automatically direct an economy to full employment within a relatively brief period of time.
• D) budget deficits and surpluses were necessary for the control of economic fluctuations.

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Definitions:

Allocate Resources

The process of distributing available resources, such as funds, materials, and labor, among various projects or departments to achieve organizational goals.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale.

Complexity

The state or quality of being intricate or complicated, which can arise from numerous interconnected parts or variables.

Risk Identification

The process of determining and documenting the risks that could affect the achievement of an organization's objectives.