Keynes considered full-employment GDP to be (LO5, 6) a) the normal state of economic affairs b) a rare occurrence c) an impossibility d) none of these

John Maynard Keynes was a British economist who fundamentally changed the way economists thought about national economies and macroeconomics. Full-employment gross domestic product (GDP) is the potential output that would occur if the unemployment rate was at the natural rate of unemployment. In simple terms, at full-employment GDP, the labor market is in equilibrium, and there is no cyclical unemployment.

Let's consider each option in the light of Keynes' thoughts: a) the normal state of economic affairs: Keynes believed that full employment is not the normal state of economic affairs as economies tend to have periods of unemployment due to economic fluctuations. b) a rare occurrence: Keynes noted that full employment could be achieved, but it's a rare occurrence because involuntary unemployment will be present in the economy during most periods other than economic booms. c) an impossibility: Keynes didn't consider full employment an impossibility; he believed it to be achievable under specific circumstances. However, he didn't think it would be a sustained condition for the economy. d) none of these: This option is not accurate as we can see that option b accurately represents Keynes' view on full-employment GDP.

Therefore, after considering all options, we can conclude that according to Keynes, full-employment GDP is (b) a rare occurrence.