ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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.

Detailed explanation-2: -Adam Smith is the father of Economics.

Detailed explanation-3: -It was developed by British economist John Maynard Keynes during the 1930s in an attempt to understand the Great Depression. The central belief of Keynesian economics is that government intervention can stabilize the economy.

Detailed explanation-4: -Keynes’ economic theories were well known in his time because of being a key proponent of monetary and fiscal policies to curb economic downturns. He founded the Keynesian economics school of thought, earning him the respect of being dubbed the “father of macroeconomics".

Detailed explanation-5: -Keynes defined economics as the study of the economy in terms of model and finding the relevant models and applying them to the real world problems. Unlike the classical economists, Keynes believed that government should play an important role in the working of the economy, when imbalances occur in the market.