When considering the basic operations of the macroeconomy,Keynesian economists argue that
A) the economy does not need help in moving back to full employment.
B) prices are flexible.
C) the market tends toward stability and full employment.
D) savings is a drain on demand.
E) the long run is more significant than the short run.

Question

Quizplus · Accepted Answer

Keynesian economists believe that savings can lead to a decrease in demand, which can ultimately result in a decrease in production and employment. Therefore, they argue that government intervention is necessary to stimulate demand and encourage economic growth.

When Considering the Basic Operations of the Macroeconomy,Keynesian Economists Argue