What Was John Maynard Keynes's Primary Message Concerning Recessions and Depressions

question 43

Multiple Choice

What was John Maynard Keynes's primary message concerning recessions and depressions?

• A) Governments should not intervene in the economy but leave the economy to recover of its own accord from a recession or depression.
• B) Recessions and depressions can occur as a result of inadequate aggregate demand for goods and services.
• C) Long-run policy intervention by governments is needed to avoid recessions and depressions.
• D) Recessions and depressions are entirely monetary phenomena.

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