The Pre-Keynesian or Classical Economic Theory Predicted That in the Long-Run

question 82

Multiple Choice

The pre-Keynesian or classical economic theory predicted that in the long-run the economy would experience:

• A) long periods of high unemployment.
• B) rising rates of inflation.
• C) only temporary periods of high unemployment.
• D) idle factors of production.

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Definitions:

Enforceable Agreement

A legally binding contract that can be upheld and compelled by law in a court of justice.

Earnest

Serious in intention, purpose, or effort; sincerely zealous.

Sale of Goods Act

Legislation that regulates the sale of goods, ensuring rights, obligations, and remedies in commercial transactions, making sure products sold are as advertised and fit for purpose.

Bankruptcy

A legal status of a person or entity that cannot repay the debts it owes to creditors, leading to a legal process aimed at resolving the financial issues under the bankruptcy laws.