WORLD HISTORY

Detailed explanation-1: -The General Theory of Employment, Interest and Money is a book by English economist John Maynard Keynes published in February 1936. It caused a profound shift in economic thought, giving macroeconomics a central place in economic theory and contributing much of its terminology – the “Keynesian Revolution".

Detailed explanation-2: -During times of economic recession (or “bust” cycles), Keynesian Economic Theory argues that governments should lower income tax rates on individuals and businesses. Thus, the private sector would have additional financial capital to invest in projects and drive the economy forward.

Detailed explanation-3: -Keynesian economics is a theory that says the government should increase demand to boost growth. 1 Keynesians believe that consumer demand is the primary driving force in an economy. As a result, the theory supports the expansionary fiscal policy.

Detailed explanation-4: -According to John Maynard Keynes, the volume of employment in a country depends on the level of ‘effective demand’ of people for goods and services.