The Notion That Everything the Economy Produces Is Purchased

question 213

Multiple Choice

The notion that everything the economy produces is purchased

• A)sums up Say's law.
• B)can be restated as "demand creates its own supply."
• C)refers to the real balance effect.
• D)was a critical assumption Keynes made in explaining the worldwide depression of the 1930s.

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Definitions:

Synaptic Basis

The fundamental role of synapses in transmitting signals between neurons in the nervous system.

Mood-Congruent Memory

The tendency to recall experiences that are consistent with one’s current good or bad mood.

Emotional States

Complex psychological states that involve physiological arousal, expressive behaviors, and conscious experience.

Short-Term Memory

The component of memory where small amounts of information can be stored for a short duration.