Which did John Maynard Keynes say? a. Government must always control the economy, b. It's sometimes necessary for government to be involved with the economy, c. It's the role of the economy to regulate itself?

1 Answer

B - sometimes necessary

Explanation:

John Maynard Keynes (1883 - 1946) was an English economist.

Prior to his writings, economists believed that if government simply left markets alone, the markets would operate efficiently, provide full employment to whoever wanted employment, and that a balance would be struck between labour and factories so long as workers were flexible in their salary demands.

Keynes argued that it wasn't that simple - that what was being ignored was the demand for products from factories (if no one is buying the stuff factories are producing, they won't in turn be able to hire workers, which means the workers won't have a salary so won't be able to buy the stuff the factories make, and so on and so on).

He argued that in periods when people are not buying the stuff factories are making, government must step in and be the "consumer of last resort" - making sure factories are selling stuff so that they can continue to employ workers who will eventually start buying stuff again. And when people start buying, government can stop.

https://en.wikipedia.org/wiki/John_Maynard_Keynes