Keynes believed that a market-driven economy was inherently unstable.
Keynes urged government to intervene to maintain full employment during periods of economic downturn.

Question

Quizplus · Accepted Answer

This is a classic tenet of Keynesian economics. Keynes believed that market economies were prone to cyclical fluctuations, which could lead to high levels of unemployment and social and political instability. In his view, government intervention was necessary to stabilize the economy and prevent these kinds of crises. One way that governments could do this was by counter-cyclical spending programs, which would help to stimulate demand during times of economic contraction.

Keynes Believed That a Market-Driven Economy Was Inherently Unstable