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:

Presbycusis

The loss of hearing that gradually occurs as individuals age, affecting the ability to perceive or understand sounds.

Otosclerosis

A disease of the bones of the middle and inner ear leading to hearing loss when these bones grow abnormally and become fixed together.

Meniere's Disease

A disorder of the inner ear causing vertigo, hearing loss, and ringing in the ear (tinnitus), typically affecting one ear.

Ear Ossicles

Three tiny bones called the malleus, the incus, and the stapes located in the middle ear cavity. They are the smallest bones of the body.