The Great Depression had led economists to suggest a larger role for

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The Great Depression showed the limitations of the market mechanism and highlighted the need for government intervention. Economists such as John Maynard Keynes argued that during times of economic downturn, the government should increase spending to stimulate demand and create jobs. This led to the adoption of policies such as the New Deal in the US and the expansion of the welfare state in many other countries, demonstrating a larger role for government intervention in the economy.

The Great Depression Had Led Economists to Suggest a Larger