The main consequence of Keynesian economics is:
A) the development of economic policy rules.
B) the rationale for macroeconomic policy activism.
C) a consensus that fiscal policy is ineffective.
D) a consensus that monetary policy is always effective.

Question

Quizplus · Accepted Answer

The main consequence of Keynesian economics is the rationale for macroeconomic policy activism, meaning that government intervention in the economy through fiscal and monetary policy is seen as necessary to maintain full employment and stabilize the business cycle. This is a key tenet of Keynesian economics and distinguishes it from other schools of thought. The other choices are not accurate reflections of the main consequence of Keynesian economics.

The Main Consequence of Keynesian Economics Is