One of Keynes' Most Profound Insights Was That

question 23

Multiple Choice

One of Keynes' most profound insights was that

• A) markets allocate resources efficiently, as if by an invisible hand
• B) comparative advantage allows all nations to gain from trade
• C) capitalists exploit workers by paying them less than the total value of what they produce
• D) the same factor that drives long run growth-technological change-also causes business cycles
• E) the economy can achieve an equilibrium below its capacity

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Definitions:

Good Versus Bad

The fundamental binary opposition that reflects moral, ethical, or qualitative judgments about actions, decisions, or objects.

Action-Motivating

Characteristics or incentives that encourage a person to take action or engage in a particular behavior.

Potential Ramifications

Possible consequences or outcomes that could arise as a result of a specific action or decision.

President

The elected head of a republican state or organization who typically represents the leadership or authority.