USA HISTORY

Detailed explanation-1: -The Keynesian Revolution replaced the classical understanding of employment with Keynes’s view that employment is a function of demand, not supply. Peter Drucker said: He had two basic motivations. One was to destroy the labor unions and the other was to maintain the free market.

Detailed explanation-2: -Throughout the 18th century, France faced a mounting economic crisis. A rapidly growing population had outpaced the food supply. A severe winter in 1788 resulted in famine and widespread starvation in the countryside. Rising prices in Paris brought bread riots.

Detailed explanation-3: -The main plank of Keynes’s theory, which has come to bear his name, is the assertion that aggregate demand-measured as the sum of spending by households, businesses, and the government-is the most important driving force in an economy.

Detailed explanation-4: -Keynesian economics is a macroeconomic theory of total spending in the economy and its effects on output, employment, and inflation. It was developed by British economist John Maynard Keynes during the 1930s in an attempt to understand the Great Depression.