Which of the following views from classical economics would be accepted by a Keynesian economist?
A) Supply creates its own demand.
B) The economy will automatically go into equilibrium at a full employment level of output.
C) There is no need for government intervention to bring the economy to an acceptable level of output.
D) None of the above would be accepted by a Keynesian economist.

Question

Quizplus · Accepted Answer

Keynesian economics emphasizes the need for government intervention in economies to manage demand and prevent deep recessions or depressions. It fundamentally disagrees with the classical views that supply creates its own demand (Say's Law), that economies naturally adjust to full employment, and that no government intervention is needed.

Which of the Following Views from Classical Economics Would Be