Which of the Following Economic Statements Would a Keynesian Economist

question 59

Multiple Choice

Which of the following economic statements would a Keynesian economist tend to support?

• A) Government central bank intervention in the economy is unnecessary.
• B) The short run deserves more attention than the long run.
• C) The key determinant of economic growth is long-run aggregate supply.
• D) Savings is a crucial component of economic growth.
• E) The economy tends to be stable and at full employment.

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Definitions:

Economic Signals

Indicators or pieces of information that guide economic decisions and actions by conveying important data about market conditions.

Marketplace

A physical or virtual space where buyers and sellers converge to trade goods, services, or information.

Market Equilibrium

A situation where the quantity of a good or service supplied equals the quantity demanded, leading to a stable market price.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing their net benefit.