John Maynard Keynes

A) agreed with classical writers that strong automatic pressures drive market economies to full employment.
B) focused on attaining the long-run macroeconomic goal of high,but stable economic growth.
C) argued that a market economy might become stuck in a short-run equilibrium in which substantial capital and labor lay idle.
D) argued that short-run equilibrium occurs only at full employment.

John Maynard Keynes

A British economist whose theories on the causes of prolonged unemployment and the role of government intervention in economies formed the basis of Keynesian economics.

Full Employment

A condition in the economy where all potential labor forces are utilized in the most economically effective manner.

Market Economy

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.