Respuesta :
Answer:
The way to break the cycle, said Keynes, is to pump government spending into the economy by building roads and bridges and other public works. ... Keynes argued that aggregate demand determines the level of economic activity. If demand falls short, it leads to recession and high unemployment.
Explanation:
Keynesian economics evolved on the aftermath of the 'Great Depression' during 1929-34 with the publication of 'The General Theory of Employment, Interest and Money' in 1936 by Keynes.
The solution of overcoming the vicious cycle of Great Depression, according to Keynesian model of Economy was:
- To pump government spending into the economy by building roads and bridges and other public works.
- In Keynesian view 'demand creates its own supply' Keynes advocated intervention by the government in macroeconomic variables in order to correct the disequilibrium in the economy.
- Keynes suggested that the government should increase its spending so that people get employment, which will generate income and demand.
John Maynard Keynes (1936) made his greatest theoretical contribution to the field of short term economic analysis. The greatest contribution of Keynes is General Theory.
Learn More: https://brainly.com/question/21176572