THE GREAT DEPRESSION 1929 1940
THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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caused the Stock Market to Crash in 1928
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increased the tax burden on citizens and businesses
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John Maynard Keynes believed could stimulate economic recovery
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John Maynard Keynes believed would make the Great Depression worse
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Detailed explanation-1: -For example, Keynesian economists would advocate deficit spending on labor-intensive infrastructure projects to stimulate employment and stabilize wages during economic downturns. They would raise taxes to cool the economy and prevent inflation when there is abundant demand-side growth.
Detailed explanation-2: -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-3: -Keynes proposed that the government spend more money and cut taxes to turn a budget deficit, which would increase consumer demand in the economy. This would, in turn, lead to an increase in overall economic activity and a reduction in unemployment.