ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Therefore, Keynesian economics supports a mixed economy guided mainly by the private sector but partly operated by the government. Prices, and especially wages, respond slowly to changes in supply and demand, resulting in periodic shortages and surpluses, especially of labor.

Detailed explanation-2: -Keynesian economics gets its name, theories, and principles from British economist John Maynard Keynes (1883–1946), who is regarded as the founder of modern macroeconomics. His most famous work, The General Theory of Employment, Interest and Money, was published in 1936.

Detailed explanation-3: -A mixed economic system is a system that combines aspects of both capitalism and socialism. A mixed economic system protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims.

Detailed explanation-4: -The theories of John Maynard Keynes, known as Keynesian economics, center around the idea that governments should play an active role in their countries’ economies, instead of just letting the free market reign. Specifically, Keynes advocated federal spending to mitigate downturns in business cycles.