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Questions and Answers
The period known as the ______ was marked by high unemployment and declining national income.
Great Depression
J.M. Keynes published his influential work titled General Theory of Employment, Interest and ______ in 1936.
Money
Keynes recognized the inadequacy of laissez-faire economics during the ______.
Great Depression
The failure of the automatic adjustment mechanism led Keynes to develop his ______ theory.
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The era of ______ economics was ushered in by Keynes's ideas during the Great Depression.
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Study Notes
The Great Depression
- The 1930s saw a major economic downturn, characterized by high unemployment, declining national income, falling prices, and factory closures.
- This period was known as the "Great Depression."
- Classical economists, who believed in self-regulating markets, struggled to provide solutions for the downturn.
J.M. Keynes and the General Theory
- J.M. Keynes's General Theory of Employment, Interest and Money (1936) provided a new perspective on the Great Depression.
- Keynes recognized the limitations of laissez-faire economics during the crisis.
- He developed the theory of "General Theory," which outlined the causes of the crisis and proposed government intervention.
The New Economics
- Keynes's "General Theory" marked the start of "The New Economics," an era of active government intervention in the economy.
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Description
Explore the significant economic challenges of the 1930s, known as the Great Depression, and learn about J.M. Keynes's revolutionary ideas presented in his work, The General Theory of Employment, Interest and Money. This quiz will cover the impact of government intervention on economic theory during this turbulent period.
