Keynes Thought That One Macroeconomic Problem Is That the Economy

question 36

Multiple Choice

Keynes thought that one macroeconomic problem is that the economy

• A)can tend toward an equilibrium level of output that is below the potential level
• B)tends toward a potential level of output that is below the equilibrium level
• C)makes the potential and equilibrium levels of output equal
• D)can be pushed below the equilibrium level of output by fiscal policy
• E)can be pushed below the potential level of output by fiscal policy

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Definitions:

U.S.

A country in North America, officially known as the United States of America, characterized by a federal republic governance structure.

Militant Union

A labor union known for its aggressive strategies and actions, such as strikes and protests, to assert workers' rights and demands.

Knights of Labor

A 19th-century labor organization in the United States that advocated for the rights of workers, including better pay and working conditions.

Strikes

A work stoppage initiated by employees to protest against their employer's policies or practices, often organized by unions.