Which of the Following Is a Major Insight of the Keynesian

question 8

Multiple Choice

Which of the following is a major insight of the Keynesian model?

• A)Changes in output,as well as changes in prices,play a role in the macroeconomic adjustment process,particularly in the long run.
• B)A general overproduction of goods relative to total demand is impossible because production creates its own demand.
• C)The responsiveness of aggregate demand to changes in supply will be directly related to the availability of unemployed resources.
• D)Fluctuations in aggregate demand are an important potential source of business instability.

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Definitions:

Collective Unconscious

A concept proposed by Carl Jung, referring to the part of the unconscious mind that is shared among beings of the same species containing memories and archetypal symbols.

Primordial Images

Archetypal images derived from the collective unconscious, as defined by Carl Jung, representing fundamental human experiences and themes.

Archetypes

Universal, inborn models of people, behaviors, or personalities that play a role in influencing human behavior.

Adler

Alfred Adler was an Austrian medical doctor, psychotherapist, and founder of the school of individual psychology, known for emphasizing the importance of feelings of inferiority and the creative power of the individual to shape his or her own destiny.