A voting procedure in which the alternative that receives the most votes wins, even if that alternative does not receive a majority of the votes, is known as the

Which school of thought believes that real GDP always equals potential GDP?

A) only classical B) only Keynesian C) Monetarist D) both Keynesian and classical

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.