The Keynesian Explanation of the Business Cycle Rests on Several

question 409

Multiple Choice

The Keynesian explanation of the business cycle rests on several concepts, including

• A) rigid money wage rates.
• B) unstable monetary policy by the Fed.
• C) shocks to the rate of technological change.
• D) the desire of politicians to be re-elected.

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Definitions:

Corporations

Legal entities that are separate and distinct from their owners, capable of owning property, suing and being sued.

Stockholders

Individuals or entities that own shares in a corporation, giving them partial ownership and potentially a claim on part of its profits.

Limited Partners

Investors in a partnership whose liability is limited to the amount of their investment, without direct management responsibilities.

Realized Capital Gain

The profit earned from the sale of an asset that has increased in value over the time it was held.