What could Keynes have meant by his now famous statement, "in the long run we are all dead?"
A) Government intervention is destabilizing, will lead to slower growth in the long run, and will prevent an economy from self-regulating.
B) Government intervention in the economy is necessary in times of recession because an economy rarely restores itself to full-employment.
C) Government intervention in the economy is useless because it takes too long to take effect.
D) Government intervention in the economy is only effective if it is not erratic.

Question

Quizplus · Accepted Answer

Keynes's statement emphasizes the urgency of addressing economic downturns through government intervention rather than waiting for the market to self-correct. He argued that relying solely on the market's self-correcting mechanisms can result in prolonged periods of unemployment and underutilization of resources, hence the need for active fiscal policies to restore full employment in the short term.

What Could Keynes Have Meant by His Now Famous Statement