Keynes Disagreed with the Classical Model Because He Felt That

question 19

Multiple Choice

Keynes disagreed with the classical model because he felt that

• A) a modern economy has adequate levels of competition to ensure the flexibility of wages and prices.
• B) supply creates its own demand.
• C) in the long run, capitalism will be replaced by socialism.
• D) one cannot be certain that changes in interest rates equate saving to investment.
• E) the automatic mechanism in a capitalist society produces accelerating rates of inflation.

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Definitions:

Self-help Groups

Peer-led groups providing support and sharing of personal experiences for individuals facing similar problems or issues, such as addiction or mental health challenges.

Primary Responsibilities

The main duties or tasks that an individual or organization is expected to perform or carry out.

Membership Composition

Refers to the makeup or structure of individuals who are part of a specific group or organization.

Lapse

A temporary failure or slip in judgment, returning to a previous behavior or habit, commonly used in the context of attempting to quit an addictive behavior.