5 Questions
According to the text, what is the central tenet of Keynesian economics?
Government intervention can stabilize the economy
What did John Maynard Keynes assert as the most important driving force in an economy?
Aggregate demand
What did existing economic theory fail to provide during the Great Depression?
Adequate public policy solution to jump-start production and employment
What did Keynesian economists justify government intervention for?
Achieving full employment and price stability
According to Keynes, what could lead to prolonged periods of high unemployment?
Inadequate overall demand
Test your knowledge of economic theories and government intervention with this quiz based on the article "Finance & Development" by Sarwat Jahan, Ahmed Saber Mahmud, and Chris Papageorgiou. Delve into the importance of money in the economy and its role during the Great Depression.
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