Keynesians
A) advocate for a laissez-faire approach.
B) believe that equilibrium may exist at less than full employment.
C) believe in the use of fiscal policy to stabilize the economy.
D) b and c
E) all of the above

Question

Quizplus · Accepted Answer

Keynesians believe that the market alone may not always lead to full employment equilibrium and therefore advocate for the use of government intervention through fiscal policy to stabilize the economy. They do not advocate for a laissez-faire approach which implies a hands-off approach by the government.