The defining feature of the Keynesian view of macroeconomics is that the economy is
A)rarely at full employment.
B)self-regulating and always at full employment.
C)that the quantity of money is the most significant influence on aggregate demand.
D)constantly bombarded by shocks that arise from the uneven pace of technological change.
E)no active stabilization is needed to offset changes in aggregate demand.

Question

Quizplus · Accepted Answer

The Keynesian view emphasizes that the economy is rarely at full employment and that it is subject to periods of recession and unemployment. Keynesians argue that government intervention is necessary to stimulate aggregate demand and stabilize the economy.

The Defining Feature of the Keynesian View of Macroeconomics Is