What Did Keynes Argue About Aggregate Demand

question 215

Multiple Choice

What did Keynes argue about aggregate demand?

• A)Aggregate demand is stable, because the economy returns to long-run equilibrium.
• B)Aggregate demand is stable, because changes in consumption are mostly offset by changes in investment and vice versa.
• C)Aggregate demand is unstable, because waves of pessimism and optimism create fluctuations in aggregate demand.
• D)Aggregate demand is unstable, because seasonal variations create fluctuations in aggregate demand.

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Cognitive activities oriented towards and emphasizing positive aspects of a situation or experience.

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