Keynes was concerned that at macroeconomic equilibrium in a laissez faire free market economy,full employment
A)And price stability might not continue simultaneously.
B)Would continue but price stability might not.
C)Might not continue but price stability would.
D)None of the choices are correct.

Question

Quizplus · Accepted Answer

Keynes believed that in a laissez faire free market economy, full employment may not be achieved or maintained due to fluctuations in investment and aggregate demand. He also believed that price stability may not continue simultaneously due to changes in aggregate supply and demand. Therefore, both concerns are present and the best choice is A.

Keynes Was Concerned That at Macroeconomic Equilibrium in a Laissez