Keynes Thought That One Macroeconomic Problem Is That an Economy

question 70

Multiple Choice

Keynes thought that one macroeconomic problem is that an economy:

• A)can tend toward an equilibrium level of output that is below the potential level.
• B)will move back to its potential after a business cycle on its own.
• C)always operates at the potential and business cycles are created by government intervention.
• D)can be pushed below the equilibrium level of output by fiscal policy.
• E)can be pushed away from the potential if prices and wages are flexible.

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