Question

5. In a short paragraph, describe John Maynard Keynes's major economic philosophies and how his beliefs differed from economic theories that were p during the early years of the Great Depression. (4 points)

Answer 1

John Maynard Keynes's economic philosophies are based on total spending in the economy and its impact on output and inflation. His philosophy was in response to the Great Depression. It proposed increased government spending and low taxes to stimulate demand and pull the economy from recession. It differed from prevailing economies as it considered the role of government as most important in stimulating the economy