After witnessing the events in the Great Depression,Keynes took the view that an economy would continually suffer major output fluctuations because of the volatility of

Question

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Keynes believed that autonomous spending, particularly planned investment spending, was the main cause of output fluctuations in the economy. He argued that during times of economic downturn, private investment would decrease and create a chain reaction of decreased demand and decreased production, leading to high unemployment and low economic output. Therefore, he believed that government intervention in the form of increased public spending and investment was necessary to stabilize the economy.

After Witnessing the Events in the Great Depression,Keynes Took the View