What Did Keynes Argue About Aggregate Demand

question 215

Multiple Choice

What did Keynes argue about aggregate demand?

• A)Aggregate demand is stable, because the economy returns to long-run equilibrium.
• B)Aggregate demand is stable, because changes in consumption are mostly offset by changes in investment and vice versa.
• C)Aggregate demand is unstable, because waves of pessimism and optimism create fluctuations in aggregate demand.
• D)Aggregate demand is unstable, because seasonal variations create fluctuations in aggregate demand.

---

Definitions:

P Orbitals

Atomic orbitals described by quantum mechanics having a dumbbell shape and oriented along the x, y, and z axes, involved in forming pi bonds.

Relative Energies

Comparative measure of the energy levels of molecules in different states or configurations.

π Molecular Orbitals

Orbitals formed by the overlap of p-orbitals across adjacent atoms, involved in pi bonding, crucial for the understanding of conjugated systems.

Occupied π Molecular Orbitals

π molecular orbitals that contain electrons; they are involved in bonding between atoms and are crucial for understanding the reactivity of molecules.