Which of the Following Did Keynes Think Was a Macroeconomic

question 108

Multiple Choice

Which of the following did Keynes think was a macroeconomic problem?  

• A) The economy can tend toward an equilibrium level of output that is below the potential level. 
• B) The economy tends toward a potential level of output that is below the equilibrium level. 
• C) The economy makes the potential and equilibrium levels of output equal. 
• D) The economy can be pushed below the equilibrium level of output by fiscal policy.

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Definitions:

Disinhibition Theory

A psychological theory suggesting that reduced inhibition of impulses or behaviors can lead to an increase in those behaviors, particularly in social or emotional contexts.

Alcohol Use

The consumption of beverages containing ethanol, which can have both social and addictive aspects, impacting health and behavior.

Substance Abuse

A pattern of drug use in which people rely on a drug chronically and excessively, allowing it to occupy a central place in their life.

Substance Dependence

Substance dependence refers to the compulsive use of drugs or alcohol, leading to clinically significant impairment or distress.