A Basic Conclusion of Keynesian Analysis Is That

question 81

Multiple Choice

A basic conclusion of Keynesian analysis is that

• A)Small macro disturbances can lead to much larger macro problems.
• B)The economy self-adjusts to reach full employment and a stable price level.
• C)Equilibrium GDP is consistent with full employment.
• D)Equilibrium GDP is consistent with price level stability.

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Definitions:

Amplitude

The maximum extent of a vibration or oscillation, measured from the position of equilibrium.

Frequency

The rate at which a cyclic or periodic event occurs, typically measured in cycles per unit time.

Timbre

The characteristic of a sound that makes it identifiable from other sounds with the same pitch and loudness.

Purity

The state or quality of being clean, free from contaminants, or morally untarnished.