The defining feature of the Keynesian view of macroeconomics is
A)that no active stabilization is needed to offset changes in aggregate demand.
B)that the economy is self- regulating and always at full employment.
C)that the economy is constantly bombarded by shocks that arise from the uneven pace of technological change.
D)that the quantity of money is the most significant influence on aggregate demand.
E)that the economy is rarely at full employment.

Question

Quizplus · Accepted Answer

The Keynesian view of macroeconomics is based on the idea that the economy is rarely at full employment and that active government intervention is needed to stabilize the economy and promote full employment. This is in contrast to other views, such as classical economics, which posit that the economy is self-regulating and will eventually reach full employment without intervention.

The Defining Feature of the Keynesian View of Macroeconomics Is