Keynes believed that:
A)monetary policies had the greatest impact on the economy.
B)long-run effects were most important and activist policies were most likely to be detrimental.
C)business decisions could be understood if policy makers did not use activist policies.
D)short-run effects were important and changes in aggregate demand could affect output and price levels.

Question

Quizplus · Accepted Answer

Keynes believed that short-run effects were important and that changes in aggregate demand could affect output and price levels. He advocated for government intervention in the economy through monetary and fiscal policies to positively impact employment levels and stabilize the economy.

Keynes Believed That