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:

Flatworm

A group of simple invertebrates known for their flat bodies, including both free-living and parasitic species like tapeworms.

Planaria

A genus of flatworms, which are often used in scientific studies due to their remarkable regenerative abilities.

Deuterostomes

A classification of animals that includes humans, characterized by the development of the anus from the first opening in the embryo.

Embryonic Development

In humans, the first 2 months of development following fertilization, during which the major organs are formed.