Asked by George Maillard Jr. on May 25, 2024

verifed

Verified

Keynes believed

A) everything produced in an economy is purchased.
B) the interest rate was more important than the expected rate of profit in determining the level of investment in an economy.
C) our economy always tends toward full employment.
D) aggregate supply was more important than aggregate demand in the short run.
E) None of the choices were believed by Keynes.

Keynes

Relates to John Maynard Keynes, a UK-based economist whose notions significantly altered macroeconomics theory and the financial policies of governments.

Aggregate Supply

The aggregate amount of products and services that companies within an economy intend to offer for sale over a given period.

Aggregate Demand

The total demand for all goods and services within a particular market or economy at a given overall price level and time.

  • Investigate the contribution of public sector involvement in managing economic upheavals following Keynesian theory.
verifed

Verified Answer

EC
Edward Captain-LarryMay 25, 2024
Final Answer :
E
Explanation :
Keynes is most famously associated with the belief that aggregate demand is the primary driving force in an economy, especially in the short run, and that economies do not always automatically tend toward full employment. He emphasized the role of government intervention to manage demand and believed that both the interest rate and the expected rate of profit are important in determining investment levels, with a particular emphasis on the latter for its influence on investment decisions. Thus, none of the provided statements accurately reflect Keynes's beliefs.