One of the major insights by economist John Maynard Keynes about production was that:
A) firms may not produce all they can at a given price, but what they can sell.
B) firms generally produce as much as they can at a given price.
C) government spending needs to be kept in check in order for the economy to operate efficiently.
D) household spending patterns don't really influence the health of the economy.

Question

Quizplus · Accepted Answer

Keynes believed that firms may not produce all they can at a given price, but only what they can sell. This is because demand influences production decisions, and firms may not want to produce too much and have unsold inventory.

One of the Major Insights by Economist John Maynard Keynes