WORLD HISTORY

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: -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.

Detailed explanation-3: -Government deficit spending was first identified as a necessary economic tool by John Maynard Keynes in the wake of the Great Depression.

Detailed explanation-4: -Elaborating this point, Keynes wrote: “Economics is a science of thinking in terms of models joined to the art of choosing models which are relevant to the contemporary world.

Detailed explanation-5: -Answer and Explanation: The Keynesian remedy for unemployment is to The Keynesian remedy for unemployment is to b. reduce tax rates or lower interest rates. Yes, these strategies will put more money in the hands of consumers and businesses which will raise aggregate demand.