Unlike the classical economists,Keynes asserted that
A)The economy was inherently unstable.
B)Laissez faire policies would lead to macro equilibrium.
C)Prices and wages were flexible.
D)Markets would naturally self-adjust.

Question

Quizplus · Accepted Answer

Keynes believed that the economy was inherently unstable and that it required government intervention to stabilize it. This was in direct contrast to classical economists who believed in laissez faire policies and that the market would naturally self-adjust. Keynes also recognized that prices and wages were not always flexible and did not adjust quickly enough to maintain macro equilibrium.

Unlike the Classical Economists,Keynes Asserted That