How Did John Maynard Keynes Explain the Great Depression, and What

question 6

Multiple Choice

How did John Maynard Keynes explain the Great Depression, and what did he suggest?

• A)Keynes explained that a market-clearing equilibrium would happen eventually; he suggested providing financial help to those who needed it and then waiting for the market to self-correct.
• B)Keynes came up with a theory stressing many supply and demand curves within the economy.
• C)Keynes explained that a market-clearing equilibrium only happens on its own in the long run; additional action was needed to get the economy out of the Depression.
• D)Keynes explained the Depression as a loss of faith or optimism among businessmen; he suggested economic encouragement for businessmen to end the Great Depression.

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Definitions:

Fatal Childhood Diseases

Severe illnesses occurring during childhood that have a high risk of leading to death.

Emotional Act

Any action driven or significantly influenced by one's emotions rather than by logical reasoning.

Physical Act

An action or activity involving bodily movement, typically requiring effort and energy.

Proximodistal

A principle of development where growth starts from the center of the body and moves towards the extremities.