The primary conclusion of Keynesian economics is that:
A) there is no tradeoff between unemployment and inflation.
B) businesses will change their prices to achieve macroeconomic goals.
C) a free market economy will automatically operate at full employment.
D) a free market economy can operate at less than full employment for long periods of time.

Question

Quizplus · Accepted Answer

Keynesian economics posits that without government intervention, a free market economy can remain in a state of underemployment equilibrium for extended periods, contradicting the classical view of self-correcting markets.

The Primary Conclusion of Keynesian Economics Is That