Asked by Jessica Pierre on May 13, 2024
Verified
In the 1930s,John Maynard Keynes said that our main economic problem was
A) weak aggregate demand.
B) too much government spending.
C) big budget deficits.
D) high interest rates.
E) that taxes were too low.
Aggregate Demand
Aggregate demand represents the total demand for goods and services within an economy at a given overall price level and time period.
John Maynard Keynes
A British scholar in economics whose contributions had a profound impact on how macroeconomics is understood and applied by governments.
- Understand the impact of fiscal policy on employment and economic gaps.
Verified Answer
AU
Amarjot UppalMay 17, 2024
Final Answer :
A
Explanation :
John Maynard Keynes believed that the main economic problem was weak aggregate demand. He argued that during times of economic downturns, the government should increase spending to stimulate demand and jumpstart economic growth. His theory came to be known as Keynesian economics.
Learning Objectives
- Understand the impact of fiscal policy on employment and economic gaps.
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