Keynesian Theory and Policies Were Developed to Show Why

question 16

Multiple Choice

Keynesian theory and policies were developed to show why

• A)prolonged periods of unemployment were impossible
• B)prolonged periods of inflation were impossible
• C)unemployment could persist for long periods
• D)the interest rate ensures that saving equals investment
• E)flexible prices and wages ensure that a modern economy will enjoy prolonged periods of low unemployment and low inflation

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Definitions:

Land Improvements

Enhancements made to land such as landscaping, fencing, and lighting that increase its value, excluding the cost of the land itself.

Buildings

Physical structures owned or used by a business for its operations, considered as a fixed asset on the balance sheet.

Machinery and Equipment

Long-term assets used in the operation of a business, typically for manufacturing, processing, or office operations.

Land

A natural resource that refers to the earth's surface not covered by water, which can be used for agriculture, construction, or as an investment.