Asked by Jennifer Gonzalez on May 06, 2024
Verified
Which of the following is false?
A) The classical economists advocate laissez-faire economics.
B) Keynesians advocate an active government role for curing a recession.
C) Keynes suggested that the normal economic state of affairs was full employment.
D) The classicals believed everything produced would necessarily be purchaseD.
Keynesians
Economists and theorists who believe in the economic principles of John Maynard Keynes, emphasizing the need for government intervention to manage economic cycles.
Classical Economists
Economists from the 18th and 19th centuries who focused on free markets, supply and demand, and self-regulating economy theories.
Laissez-Faire Economics
A belief system advocating for capitalism with minimal to no government interference in the market.
- Fathom the fundamental theoretical disparities between classical economics and Keynesian economics.
Verified Answer
GN
Geraldine NkwainMay 08, 2024
Final Answer :
C
Explanation :
Keynes suggested that the normal state of affairs was not full employment, but rather a state of unemployment or underemployment, and that government intervention was needed to stimulate demand and increase employment.
Learning Objectives
- Fathom the fundamental theoretical disparities between classical economics and Keynesian economics.