Question

This quotation best supports which of the economic theories of John Maynard Keynes?
a. Businesses and jobs rely most strongly on consumer demand.
b. Government regulation is necessary to stabilize the economy.
c. Markets operate best when allowed to operate freely.
d. Private individuals can best make their own economic decisions.

Answer 1

b. Government regulation is necessary to stabilize the economy.
That's the answer.

Answer 2

Answer:

C. Government regulation is necessary to stabilise the economy.

Explanation:

John Maynard Keynes was a British economist and his ideas had big impact on the modern political and economic theory. His ideas are called Keynesian economics and affected many government's economic policies. He proposed that government should take banking and tax measures to halt the effects of depressions, recessions and booms as economies do not stabilise themselves and requires government intervention to boost the short term demand. He is considered to be the father of theoretical macroeconomics.