ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -At Cambridge he was influenced by economist Alfred Marshall, who prompted Keynes to shift his academic interests from mathematics and the classics to politics and economics. Cambridge also introduced Keynes to an important group of writers and artists.

Detailed explanation-2: -British economist John Maynard Keynes spearheaded a revolution in economic thinking that overturned the then-prevailing idea that free markets would automatically provide full employment-that is, that everyone who wanted a job would have one as long as workers were flexible in their wage demands (see box).

Detailed explanation-3: -1 Keynesians believe that consumer demand is the primary driving force in an economy. As a result, the theory supports the expansionary fiscal policy. Its main tools are government spending on infrastructure, unemployment benefits, and education.

Detailed explanation-4: -11.2 Government Spending and Tax Multipliers The followers of Keynes believed that fiscal policy can be a powerful lever to move the economy because the effect of an increase in spending or a cut in taxes would be multiplied by stimulating additional demand for consumption goods by households.

Detailed explanation-5: -Adam Smith is the father of Economics.