Related to the Economics in Practice on p.554: In the simple "Keynesian" view,maximum output is NOT defined by the
A)existing labor force.
B)current capital stock.
C)existing state of technology.
D)level of consumption.

Question

Quizplus · Accepted Answer

In the simple "Keynesian" view, maximum output is not defined by the level of consumption. Rather, it is determined by the level of aggregate demand in the economy, which can be influenced by government policy and other factors. The level of consumption is only one component of aggregate demand, along with investment, government spending, and net exports.

Related to the Economics in Practice on P