John Maynard Keynes focused on _____ to explain how the economy reaches short-term equilibrium employment, output, and income.
A) aggregate spending
B) investment
C) interest rates
D) property rights

Question

Quizplus · Accepted Answer

Keynes believed that aggregate spending was the primary driver of short-term economic fluctuations and that government intervention was necessary to stabilize the economy. He argued that if aggregate spending was insufficient to support full employment, then government policies such as fiscal stimulus or monetary policy could be employed to boost demand and output.

John Maynard Keynes Focused on _____ to Explain How the Economy