Keynes once remarked that, in the long run, we're all dead. He was responding to the conventional wisdom of classical economics who argued that:
A) the supply curve should remain vertical in the long run.
B) World War I was fought to free Britain from economic ruin.
C) the depression was only a short-run, temporary departure from full-employment equilibrium.
D) market-based realities cause the estate tax to be too high.

Question

Quizplus · Accepted Answer

Keynes was criticizing the classical view that markets would naturally return to full-employment equilibrium in the long run, implying that any short-term economic pain would eventually be resolved. He believed that government intervention was necessary to stimulate demand and create jobs in the short run, rather than waiting for markets to self-correct in the long run. The other options do not relate to Keynes' quote or his economic views.

Keynes Once Remarked That, in the Long Run, We're All