The Keynesian view of the world is that the
A)self-correcting mechanism is unreliable.
B)benefits of fighting unemployment are high and the costs are low.
C)short-run Phillips curve is relatively flat.
D)All of these responses are correct.

Question

Quizplus · Accepted Answer

The Keynesian view is that the self-correcting mechanism of the economy is unreliable, which suggests that it may not necessarily lead to full employment. Therefore, fighting unemployment is highly beneficial, while the costs are low. This is supported by the idea that the short-run Phillips curve is relatively flat, indicating that policymakers can use expansionary policies to achieve lower unemployment without causing excessive inflation. Therefore, all of the given responses are correct.

The Keynesian View of the World Is That the