Keynesian Analysis Implies That Potential Output and Price Stability Can

question 97

Multiple Choice

Keynesian analysis implies that potential output and price stability can be achieved if

• A) the federal budget is balanced annually.
• B) marginal tax rates are kept low so the incentive to produce will be strong.
• C) aggregate demand is equal to the economy's full-employment rate of output.
• D) current saving exceeds the level of investment.

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Definitions:

Protected Classes

Groups of people who are legally protected from discrimination and harassment in the workplace, housing, education, and other areas based on specific characteristics such as race, religion, gender, and more.

Equity Theory

Equity Theory suggests that individuals seek fairness in relationships, feeling satisfied when they perceive that their inputs and outcomes are proportional to those of their comparison others.

Continuance Commitment

Commitment that results when an employee remains with a company because of the high cost of losing organizational membership including monetary and social costs.

Normative Commitment

A commitment to the organization based on feelings of obligation.