The defining feature of the Keynesian view of macroeconomics is
A)that the economy is rarely at full employment.
B)that the economy is self-regulating and always at full employment.
C)that the quantity of money is the most significant influence on aggregate demand.
D)that the economy is constantly bombarded by shocks that arise from the uneven pace of technological change.
E)that no active stabilization is needed to offset changes in aggregate demand.

Question

Quizplus · Accepted Answer

The defining feature of the Keynesian view of macroeconomics is that the economy is rarely at full employment. In other words, Keynesians believe that the economy can experience prolonged periods of unemployment and underutilization of resources, and that government intervention is necessary to stimulate demand and restore full employment.

The Defining Feature of the Keynesian View of Macroeconomics Is