Keynes Argued That Aggregate Demand Is

question 12

Multiple Choice

Keynes argued that aggregate demand is

• A)stable,because the economy tends to return to its long-run equilibrium quickly after any disturbance to aggregate demand.
• B)stable,because changes in consumption are mostly offset by changes in investment and vice versa.
• C)unstable,because waves of pessimism and optimism create fluctuations in aggregate demand.
• D)unstable,because of long and variable policy lags that worsen economic fluctuations.

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Definitions:

Pure Resistive Load

An electrical load that has no capacitance or inductance, resulting in current and voltage being in phase.

Power Factor

A dimensionless number between 0 and 1 that measures the efficiency of an electrical system, calculated as the ratio of real power to apparent power.

Voltage

The electrical potential difference between two points in a circuit, measuring the energy required to move a unit charge between those points.

Current

The flow of electric charge through a conductor, a fundamental concept in electrical and electronic circuits.