Keynesian theory and policies were developed to show why
A)prolonged periods of unemployment were impossible
B)prolonged periods of inflation were impossible
C)unemployment could persist for long periods
D)the interest rate ensures that saving equals investment
E)flexible prices and wages ensure that a modern economy will enjoy prolonged periods of low unemployment and low inflation

Question

Quizplus · Accepted Answer

Keynesian theory and policies were developed to explain why unemployment could persist for long periods, and to offer potential solutions for reducing unemployment through government intervention in the economy.

Keynesian Theory and Policies Were Developed to Show Why