The Keynesian Approach to Macroeconomics Assumes That

question 24

Multiple Choice

The Keynesian approach to macroeconomics assumes that

• A)wages,but not prices,adjust quickly to balance quantities supplied and demanded in markets.
• B)wages and prices adjust quickly to balance quantities supplied and demanded in markets.
• C)prices,but not wages,adjust quickly to balance quantities supplied and demanded in markets.
• D)neither wages nor prices adjust quickly to balance quantities supplied and demanded in markets.

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Definitions:

Illusory Promise

A statement that appears to be a promise but does not actually bind the party to any commitment or obligation.

Redistribution of Wealth

A process or policy aimed at adjusting the distribution of wealth within a society, usually by transferring wealth from the richer to the poorer segments.

Consideration

Something of value exchanged between parties as part of a contract.

Adequacy of Consideration

A legal concept referring to the fairness of the value exchanged in a contract, ensuring each party receives something of comparable worth.