Which of the following would a Keynesian economist be most likely to stress?
A) Supply creates its own demand.
B) Businesses will not produce goods and services if they do not think people will buy them.
C) You cannot spend your way out of a recession.
D) When the unemployment rate is high, wage rates will fall.
E) A dollar saved is a dollar earned; a high rate of saving is the key to prosperity.

Question

Quizplus · Accepted Answer

Keynesian economics emphasizes the importance of stimulating demand through government intervention, as opposed to laissez-faire policies that rely on supply-side factors such as tax cuts to boost the economy. Therefore, option B, which emphasizes the importance of businesses anticipating consumer demand to drive production, is more consistent with Keynesian economics. The other options do not align with Keynesian economic principles.

Which of the Following Would a Keynesian Economist Be Most