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John Maynard Keynes believed that the economy could be turned around and brought out of a depression by:

A) increasing the minimum wage.
B) increasing government spending.
C) decreasing government spending.
D) passing higher taxes on businesses.

2 Answers

7 votes
b increasing goverment spendin

User Soman Dubey
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4 votes

Answer:

The correct answer is B. John Maynard Keynes believed that the economy could be turned around and brought out of a depression by increasing government spending.

Step-by-step explanation:

John Maynard Keynes was a British economist, considered one of the most influential of the 20th century, whose ideas had a strong impact on economic theories and policies.

The main novelty of his thinking was to consider that the capitalist system does not tend towards full employment or the balance of productive factors, but towards a balance that only coincidentally coincides with full employment. Keynes and his followers highlighted not only the ascendant nature of the aggregate supply, in contrast with the classical view, but also the instability of the aggregate demand, coming from the shocks that occurred in private markets, as a consequence of the ups and downs in the investor confidence. The main conclusion of his analysis is a commitment to direct public intervention in public expenditure, which allows to cover the gap or deficit of aggregate demand.

User Leandra
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