The belief that the self-regulating capabilities of a market economy are insufficient to ensure a stable,full-employment equilibrium is associated with
A) monetarists.
B) Keynesians.
C) supply siders.
D) rational expectations theorists.
E) new classical macroeconomists.

Question

Quizplus · Accepted Answer

The belief that the self-regulating capabilities of a market economy are insufficient to ensure a stable, full-employment equilibrium is a core tenet of Keynesian economics. Keynesians argue that government intervention is needed to stabilize the economy during times of recession and boost aggregate demand to promote full employment.

The Belief That the Self-Regulating Capabilities of a Market Economy