John Maynard Keynes,author of The General Theory of Employment,Interest,and Money,argued that
A) classical economic theory was correct
B) the government should follow a policy of laissez faire
C) the critiques of classical economics were flawed
D) the economy does not always perform well in the absence of government guidance
E) instead of focusing on money,the government should control interest rates

Question

Quizplus · Accepted Answer

John Maynard Keynes believed that the economy does not always perform well in the absence of government guidance. He argued that during times of economic instability, the government should intervene to stimulate demand and promote full employment. This is in contrast to classical economic theory, which advocated for a laissez faire approach and believed that the market would correct itself. Keynes' ideas became the foundation for modern macroeconomics and influenced government policies, such as fiscal and monetary policies, aimed at stabilizing the economy.

John Maynard Keynes,author of the General Theory of Employment,Interest,and Money,argued