Why were the Keynesian theory and policies developed?
A) to demonstrate why the occurrence of a prolonged period of unemployment is impossible
B) to demonstrate why the occurrence of a prolonged period of inflation is impossible
C) to demonstrate why unemployment can persist for a long period
D) to demonstrate why the interest rate ensures that saving equals investment

Question

Why were the Keynesian theory and policies developed?  
A) to demonstrate why the occurrence of a prolonged period of unemployment is impossible 
B) to demonstrate why the occurrence of a prolonged period of inflation is impossible 
C) to demonstrate why unemployment can persist for a long period 
D) to demonstrate why the interest rate ensures that saving equals investment

Quizplus · Accepted Answer

The Keynesian theory and policies were developed to explain and address the persistence of unemployment during economic downturns. They proposed government intervention to stimulate demand and create employment opportunities to combat long-term unemployment.

Why Were the Keynesian Theory and Policies Developed