_______ Is a State of Uncertainty Where Some of the Possibilities

question 34

Multiple Choice

_______ is a state of uncertainty where some of the possibilities involve a loss, catastrophe, or other undesirable outcome.

• A) Risk
• B) Typicality
• C) Risk aversion
• D) Availability effect
• E) Excessive discounting

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Definitions:

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible, typically reflected by the absence of cyclical unemployment.

Keynes

Relates to John Maynard Keynes, a UK-based economist whose notions significantly altered macroeconomics theory and the financial policies of governments.

Aggregate Supply

The aggregate amount of products and services that companies within an economy intend to offer for sale over a given period.

Aggregate Demand

The total demand for all goods and services within a particular market or economy at a given overall price level and time.