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John Maynard Keynes argued that natural forces in the economy would reduce unemployment, and government actions only tend to make unemployment worse.

a) True
b) False

User Masterial
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Final answer:

The statement is (b) false; John Maynard Keynes advocated for government intervention to reduce unemployment during economic downturns, which is a key principle of Keynesian economics.

Step-by-step explanation:

The statement 'John Maynard Keynes argued that natural forces in the economy would reduce unemployment, and government actions only tend to make unemployment worse' is false. John Maynard Keynes famously argued that during periods of economic downturns, natural market forces are likely inadequate for addressing high levels of unemployment.

Instead, he posited that proactive government fiscal policies could stimulate demand, leading to increased production and, in turn, lower unemployment rates. This policy approach of using government intervention to manage economic cycles is a key element of Keynesian economics, contrasting the neoclassical view which tends to emphasize the self-correcting nature of markets without significant government interference.

User DaudiHell
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