John Maynard Keynes wrote The General Theory of Employment, Interest, and Money (1936) to
A)improve the gold supply balances of the British government.
B)prove that the punitive nature of the Treaty of Versailles would ultimately lead to recession in Europe.
C)prove that active government policy would produce unemployment and high rates of inflation.
D)demonstrate that pessimistic consumers and businesspersons could reduce their spending and condemn the economy to long-run stagnation.

Question

Quizplus · Accepted Answer

Keynes wrote "The General Theory of Employment, Interest, and Money" to argue that insufficient demand could lead to prolonged periods of high unemployment, and that government intervention, through fiscal and monetary policy, could help manage economic cycles. This theory challenged the classical economic thought that markets are always clear and that economies are self-correcting.

John Maynard Keynes Wrote the General Theory of Employment, Interest