5 Questions
Who spearheaded a revolution in economic thinking during the Great Depression?
John Maynard Keynes
What is the central tenet of the school of thought mentioned in the text?
Government intervention can stabilize the economy
What was the prevailing idea about free markets before the revolution in economic thinking?
Free markets would automatically provide full employment
What was the main assertion of Keynes's theory?
Aggregate demand determines economic activity
What did existing economic theory fail to do during the Great Depression?
Both A and B
Test your knowledge of economic theories and government intervention with this quiz based on the central tenets of a school of thought, as well as the role of money in the economy. The Great Depression and its impact are also explored.
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