would fix itself; therefore, the government shouldnt interfere with the economy. He said one has to have faith because the economy will fix itself. Things may not be going great right now, but the economy will rise on its own. The result is graphically represented as a vertical aggregate supply curve.John Maynard Keynes believed that it was necessary for the government to intervene in the economy. He felt the government played an essential part in maintaining the economy and keep it from going into a depression. The Keynesian view sees the causes of unemployment and inflation as the failure of certain fundamental economic decisions. Also, product prices and wages are downwardly inflexible, meaning the significant declines in prices and wages will occur only after extended and costly periods of recession or depression. Internal factors plus external forces, such as wars and droughts, contribute to economic instability. John Maynard Keynes said:The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist.The essence of extreme Keynesian is that product prices and wages are downwardly inflexible over very long time periods. The result is graphically represented as a horizontal aggregate supply curve. Keyness view is that the economy is like an elevator goes up and down regularly, but it could stall.There should not be total government control as in Marxs opinion nor should there be no governmental influence as in Smiths opinion. The Great Depression was a desolate time for the economy, and if it wasnt for the government spending money on World War II, we may not be as prosperous as we are today. Keyness view was the most correct because the government should ...
