Keynes was motivated to create a macroeconomic theory different from classical theory because
A)he believed in government intervention in the economy.
B)he believed in the idea of the invisible hand.
C)monetary policy was more important than the classicals acknowledged.
D)classical theory was inconsistent with the data in the Great Depression.

Question

Quizplus · Accepted Answer

Keynes felt that classical theory failed to explain the causes and consequences of the Great Depression. He believed that government intervention was necessary to stabilize the economy during times of recession and that monetary policy was not enough to stimulate demand.

Keynes Was Motivated to Create a Macroeconomic Theory Different from Classical