Keynes believed that1. the economy was always at full employment of resources. 2. the economy was never at full employment of resources. 3. the economy was self-correcting. 4. any increase in demand will only be met with higher prices and little or no more production. 5. wages and prices increase to attain full employment of resources.

Question

Yosef Hayes

Social Studies

21 October, 20:05

Keynes believed that1. the economy was always at full employment of resources. 2. the economy was never at full employment of resources. 3. the economy was self-correcting. 4. any increase in demand will only be met with higher prices and little or no more production. 5. wages and prices increase to attain full employment of resources.

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Answers (1)

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Albert · Answer 1

Answer: I will agree with him on the second statement.

Explanation:

We don't have any perfect economy and no economy uses its full resources to become the best because every economy has its own resources that would make it better, but no economy has used its full resources.

The best economy in the world has not used all its potentials that is why the growth of GDP in any country has not been stable for over 10 years because things are not perfect. The only reason we can regard an economy has been the best is when life and its people are not experiencing hardship but this is not possible for every citizens of a country to not face hardship.

In conclusion, I agree with his believe in the second statement that the economy was never a full employment of its resources.