Question

Which of the following statement(s) is/are true regarding the ideas of the economist JM Keynes?

• A. He rejected the role of the state in creating employment opportunities.
• B. He came up with a relief program called the New Deal.
• C. He wanted the state to invest money and generate more employment.
• D. He believed that the state is responsible for keeping the economy healthy.

Answer 1

Answer: (C), (D)

He believed that the state is responsible for keeping the economy healthy.

Economist JM Keynes insisted on the role of the state or the government in a crisis like the Great Depression. He argued that a state or government is responsible for keeping the economy healthy. If the economy falls due to a decline in demand, the state must invest money and generate more employment which will help people earn more money and increase the demand for goods.

It was Franklin D. Roosevelt who came up with a relief programme called the “New Deal” to combat the effects of the Great Depression.