Which of the Following Statements Concerning Keynesian Analysis Is False

question 93

Multiple Choice

Which of the following statements concerning Keynesian analysis is false?

• A)Keynes's analysis started with the recognition that the total quantity demanded of an economy's output was the sum of four types of spending: consumer expenditure,planned investment spending,government spending,and net exports.
• B)Keynes recognized that equilibrium would occur in the economy when total quantity of output supplied equals quantity of output demanded (Y^ad),that is,when Y = Y^ad.
• C)Keynes's analysis involves explaining why aggregate output is at a certain level by understanding what factors affect each component of aggregate demand and how the sum of these components could add up to an output smaller than the economy is capable of producing,resulting in less than full employment.
• D)Keynes's analysis explains how the price level will change when the total quantity of output supplied changes.

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Definitions:

Statistically Significant

Describes a result that is unlikely to have occurred by chance alone, according to a predefined significance level.

Null Hypothesis

A hypothesis that states there is no effect or no difference, and it serves as the default assumption that is tested against the alternative hypothesis.

Personal Goals

Individual objectives or targets that a person aims to achieve, which can be related to various aspects of life, such as career, education, or personal development.

Chi-square Test

A statistical evaluation aimed at identifying a meaningful connection between two categorical variables.