The Defining Feature of the Keynesian View of Macroeconomics Is

question 97

Multiple Choice

The defining feature of the Keynesian view of macroeconomics is

• A)that the economy is rarely at full employment.
• B)that the economy is self-regulating and always at full employment.
• C)that the quantity of money is the most significant influence on aggregate demand.
• D)that the economy is constantly bombarded by shocks that arise from the uneven pace of technological change.
• E)that no active stabilization is needed to offset changes in aggregate demand.

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Definitions:

Explicit Costs

are direct, out-of-pocket payments for expenses incurred by a business or individual.

Revenues

The total income generated by a company or organization from its activities, before any expenses are subtracted.

Economic Profit

The difference between the total revenues received by a business and the total opportunity costs of all resources used in the production.

Accounting Profit

The net income of a business as calculated by subtracting total expenses from total revenues, according to standard accounting practices.