John Maynard Keynes developed the ideas underlying the aggregate expenditures model:
A) In the 1960s
B) In the 1980s
C) As a reinforcement of Say's Law
D) As a critique of classical economics

Question

Quizplus · Accepted Answer

John Maynard Keynes developed the aggregate expenditures model as a critique of classical economics. He believed that market economies could experience prolonged periods of high unemployment, which contradicted classical theory that predicted a self-correcting market. The aggregate expenditures model focused on the relationship between spending and output in the short run, and advocated for government intervention to stimulate demand and decrease unemployment.

John Maynard Keynes Developed the Ideas Underlying the Aggregate Expenditures