What Could Keynes Have Meant by His Now Famous Statement

question 218

Multiple Choice

What could Keynes have meant by his now famous statement, "in the long run we are all dead?"

• A) Government intervention is destabilizing, will lead to slower growth in the long run, and will prevent an economy from self-regulating.
• B) Government intervention in the economy is necessary in times of recession because an economy rarely restores itself to full-employment.
• C) Government intervention in the economy is useless because it takes too long to take effect.
• D) Government intervention in the economy is only effective if it is not erratic.

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Definitions:

Object Permanence

Object permanence is the cognitive understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed.

Reflexes

Automatic, involuntary responses to specific stimuli.

Goal-Directed Behavior

Actions or series of actions that an individual initiates and maintains to achieve a specific objective.

Conservation

The principle that certain properties remain the same despite changes in the form of objects, or understanding the permanence of quantity despite changes in the shape or container.