Economist John Maynard Keynes noted one of the main contributors to the Great Depression in the 1930s was:
A) insufficient spending causing below natural rate output.
B) poor infrastructure for manufacturing.
C) a labor market that could not meet the demands of the market at the time.
D) an insufficient agriculture sector, unable to produce enough food for the large US population.

Question

Quizplus · Accepted Answer

John Maynard Keynes believed that insufficient spending by consumers and businesses was one of the main factors that led to the Great Depression. This caused a decrease in demand, which caused factories to lay off workers and reduced output below the natural rate. This ultimately led to a downward spiral of economic activity, with businesses continuing to decrease production and lay off more workers.

Economist John Maynard Keynes Noted One of the Main Contributors