According to Keynesian economists, the problem in the Great Depression was
A) a major outside shock.
B) deficit spending by the government.
C) a lack of effective demand.
D) government interfering with the natural tendency of the economy to restore equilibrium.

Question

Quizplus · Accepted Answer

According to Keynesian economists, the root cause of the Great Depression was a lack of effective demand, meaning that people were not spending enough money to support the overall economy. Government intervention through deficit spending and other measures was seen as necessary to boost demand and get the economy back on track.

According to Keynesian Economists, the Problem in the Great Depression