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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Definitions:

Loose Culture

A societal or organizational culture characterized by relaxed norms, rules, and regulations, allowing for greater flexibility and individuality.

Uncertainty-Avoidance Cultures

Societies or cultures that have a low tolerance for ambiguity and uncertainty, leading to a preference for clear rules and structures.

Predictability

The degree to which future events or behaviors can be forecasted based on past patterns or data, indicating a level of certainty or expectation.

Loose Culture

A type of organizational culture that is flexible, adaptable, and less governed by strict rules and procedures, often encouraging creativity and innovation.