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.

---

Definitions:

Preferences

In economics, a description of the needs or desires that consumers use to make choices among different goods or services.

Indifference Curves

Graphical representations used in microeconomics to show combinations of two goods that provide the same level of utility to a consumer.

Preferences

Individual tastes or choices regarding various alternatives, shaped by factors like utility, satisfaction, and economic conditions.

Convex

A shape or function where a line segment joining any two points on its graph lies above or on the graph, often associated with optimization problems in economics.