The Goods Market Adjusts to an Equilibrium Right at the Point

question 90

Multiple Choice

The goods market adjusts to an equilibrium right at the point of the Keynesian cross. Why?

• A) At that point, the Keynesian theory of sticky prices is correct.
• B) At only that point, total spending is equal to total production.
• C) At only that point, consumers are fully satisfied and firms have maximized profits.
• D) At only that point, the unemployment rate is zero and workers need not seek higher wages.

---

Definitions:

Self-Image

One's personal perception or mental picture of themselves, including beliefs about appearance, abilities, and worth.

Self-Esteem

An individual's subjective evaluation of their own worth, including feelings of confidence, respect, and self-acceptance.

Virtue

A quality considered morally good or desirable in a person.

Discriminating

Showing prejudice or bias, particularly in treating or considering people differently based on race, gender, or other personal characteristics.