In developing his macroeconomic theory, Keynes
A) focused primarily on how potential GDP can change over time.
B) focused on how fiscal policy can change potential output.
C) was concerned with output gaps and how they could be eliminated.
D) was primarily concerned with the supply-side of the economy and how producer behavior led to output gaps.

Question

Quizplus · Accepted Answer

Keynes was primarily concerned with output gaps and how they could be eliminated through government intervention to stabilize aggregate demand.

In Developing His Macroeconomic Theory, Keynes