Keynes Argued That an Economy Could Be in Equilibrium When

question 215

Multiple Choice

Keynes argued that an economy could be in equilibrium when the economy was

• A) operating at maximum potential capacity.
• B) operating with some unutilized productive capacity.
• C) trying to operate at some output level beyond its potential capacity.
• D) operating either at full productive capacity or at less than full capacity.

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Definitions:

Variance

A measure of the spread between numbers in a data set, indicating how much the numbers differ from the average.

Payoff

The return or outcome received from an investment or decision, often used in context of financial transactions and game theory.

Risky Undertaking

An action or project that involves a high degree of uncertainty or danger regarding its outcome or success.

Expected Value

A calculation in probability and statistics that shows what to predict as the outcome on average over many trials.