Greater regulation to correct the imbalances in the economy, as well government intervention to maintain full employment, was associated primarily with the work of
A) John Maynard Keynes.
B) Adam Smith.
C) Karl Marx.
D) Ronald Reagan.

Question

Quizplus · Accepted Answer

Keynesian economics calls for government intervention in the economy to correct market failures and maintain full employment. This theory was developed by John Maynard Keynes in response to the Great Depression and became dominant economic policy during the post-war period. The other options, Adam Smith and Karl Marx, represent different economic theories that do not support greater government intervention. Ronald Reagan's economic policies were associated with a decrease in government regulation and a shift towards free-market principles.

Greater Regulation to Correct the Imbalances in the Economy, as Well