If Asked About the Basic Functioning of the Economy,a Keynesian

question 87

Multiple Choice

If asked about the basic functioning of the economy,a Keynesian economist would state that

• A) prices are flexible.
• B) the market tends toward stability and full employment.
• C) the market tends toward instability and cyclical unemployment.
• D) savings is crucial to growth.
• E) the long run is more important than the short run.

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Definitions:

Affirming Statements

Positive declarations or expressions of support and encouragement aimed at validating someone's feelings or actions.

Counterproductive Words

Terms or phrases that can hinder progress, negatively affect morale, or undermine the intentions of communication.

Goal-Setting Principle

A strategy or guideline that involves establishing clear, achievable, and measurable objectives to enhance motivation and performance.

Maximum Flexibility

The ability to adapt to changes and varying demands with the greatest range of motion or options.