Keynesian Economic Theories
Use the drop-down menus to complete each sentence.

Keynes was an avid believer in (government) intervention to help solve economic issues.

Keynes believed that (decreasing) aggregate demand could help solve economic problems during a recession.

Keynes recommended that the government (stop collecting) 'taxes during economic contraction.
During the Great Depression,

Keynes promoted (expansionary) actions to encourage economic recovery.

The correct answers just took it

-Keynes was an avid believer in government intervention to help solve economic issues.

-Keynes believed that decreasing aggregate demand could help solve economic problems during a recession.

-Keynes recommended that the government stop collecting 'taxes during economic contraction.

-During the Great Depression,  Keynes promoted expansionary actions to encourage economic recovery.

Explanation:

Keynesianism is a modern economic model designed by British economist John Maynard Keynes. The model proposes a mix between planning and market economy, that assumes that the state is actively entering the economy to counter large cyclical fluctuations. If the economy shows signs of stagnation, the state contributes with financial measures to keep up the activity in the economy. Measures may include lower interest rates, taxes, increased public transfers, social security schemes, etc. Otherwise, the state will withdraw money in an economy that is going well through tight public budgets, higher interest rates and higher private consumption taxes. This is also called countercyclical policy.  

Keynesianism came into scene during the Great Depression. Through the Democrats' electoral victory in the 1932 presidential election, Franklin D. Roosevelt began an expansive economic turnaround to get the US economy back on track after the crisis. This program was named "New Deal" and absorbed much of the Keynesian thought. Federal authorities actively engaged in support schemes for certain regions and social groups in American society to help resolve the crisis.

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Explanation:

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