If asked about the basic functioning of the economy,a Keynesian economist would state that:
A) markets, especially prices, are able to change quickly.
B) the market tends toward stability and full employment.
C) the market tends toward instability and cyclical unemployment.
D) savings is crucial to growth.
E) the long run is more important than the short run.

Question

Quizplus · Accepted Answer

Keynesian economists believe that the market tends towards instability and cyclical unemployment. They often argue that it is the role of government to intervene during times of economic downturn and stimulate demand through fiscal policy, such as increasing government spending or cutting taxes.

If Asked About the Basic Functioning of the Economy,a Keynesian