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 free market economy, full employment may not be achieved without inflationary pressures and that achieving price stability may require sacrificing full employment. Therefore, at macroeconomic equilibrium, both full employment and price stability might not continue simultaneously.

Keynes Was Concerned That at Macroeconomic Equilibrium in a Laissez