Reference no: EM133599366

Question: How did John Maynard Keynes explain the Great Depression, and what did he suggest? Keynes explained that a market-clearing equilibrium would happen eventually; he suggested providing financial help to those who needed it and then waiting for the market to self-correct. Keynes explained that a market-clearing equilibrium only happens on its own in the long run; additional action was needed to get the economy out of the Depression. Keynes explained the Depression as a loss of faith or optimism among businessmen; he suggested economic encouragement for businessmen to end the Great Depression. Keynes came up with a theory stressing many supply and demand curves within the economy.