John Maynard Keynes created the aggregate expenditures model based primarily on what historical event?
A) bank panic of 1907
B) Great Depression
C) spectacular economic growth during World War II
D) economic expansion of the 1920s

Question

Quizplus · Accepted Answer

The aggregate expenditures model was created by John Maynard Keynes in response to the Great Depression, which highlighted the inadequacy of classical economic theory in explaining and addressing the crisis. Keynes believed that government intervention and deficit spending could stimulate demand and restore economic growth.

John Maynard Keynes Created the Aggregate Expenditures Model Based Primarily