Keynes argued that governments must accept persistent high employment until wages fell low enough for the demand for labor to increase.

Question

Quizplus · Accepted Answer

Keynes believed in government intervention to stimulate employment and spending during economic downturns, including through public works programs and deficit spending. He did not advocate for accepting persistent high employment until wages fell. In fact, he argued that increasing aggregate demand through government action could prevent such a scenario.

Keynes Argued That Governments Must Accept Persistent High Employment Until