Which of the Following Is a Central Argument of Keynes's

question 195

Multiple Choice

Which of the following is a central argument of Keynes's General Theory?

• A) Competition does not allocate resources efficiently in a modern industrial economy.
• B) Full employment can be maintained even during a major recession if wage rates are lowered far enough.
• C) Modern industrial economies do not tend automatically toward full employment rates of output.
• D) Money does not play an important role in either causing or curing recession.
• E) Government can best stabilize the economy by letting the market system automatically adjust toward full employment.

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Definitions:

Mill Rate

A tax rate applied to property value, with one mill representing one-tenth of a cent ($0.001).

Revenues

The total amount of money received by a company for goods sold or services provided during a certain period of time.

Fraction

A mathematical formula that signifies dividing one value by another.

Decimal Places

Decimal places refer to the digits that appear after the decimal point in a numerical value, representing fractions of a whole.