According to Keynesians

question 115

Multiple Choice

According to Keynesians

• A)An increase in aggregate demand will always lead to inflation.
• B)An increase in aggregate demand will eventually lead to deflation.
• C)An increase in aggregate demand will eventually lead to less real GDP.
• D)Insufficient aggregate demand could keep an economy in a depression for an extended period of time.

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Definitions:

Total Wealth

The sum of all financial assets and physical possessions that have a monetary value owned by an individual or organization.

Reverse Stock Split

A corporate action that reduces the number of a company's outstanding shares by combining them into fewer, proportionally more valuable shares.

Market Price

The immediate price at which an asset or service is open for buying or selling.

Shares Outstanding

The total number of a company's shares of stock that are owned by shareholders, including those held by institutional investors and company officers.