Keynes Argued That Aggregate Demand Is

question 12

Multiple Choice

Keynes argued that aggregate demand is

• A)stable,because the economy tends to return to its long-run equilibrium quickly after any disturbance to aggregate demand.
• B)stable,because changes in consumption are mostly offset by changes in investment and vice versa.
• C)unstable,because waves of pessimism and optimism create fluctuations in aggregate demand.
• D)unstable,because of long and variable policy lags that worsen economic fluctuations.

Distinguish between different types of accounts (asset, liability, equity, revenue, and expense accounts) and their roles in accounting.

Know the role and function of the trial balance in the accounting process.

Recognize the importance of posting and the potential effects of posting errors on financial statements.

Interpret financial data to make informed business decisions.

---

Definitions:

Hunger

Hunger is the physical sensation of needing food, driven by the body's energy requirements.

Bad Mood

A temporal state of feeling sad, irritable, or angry without a clearly identifiable reason, affecting one's thoughts and behaviors.

Dating Partners

Individuals involved in a romantic relationship with the purpose of assessing each other's suitability as a partner in an intimate relationship or marriage.

Skeptical

Characterized by a questioning attitude towards information, beliefs, or claims, often requiring evidence before acceptance.