Q. Consider the following statements regarding macroeconomics:
1.John Maynard Keynes’ book The General Theory of Employment, Interest and Money (1936) is regarded as the starting point of modern macroeconomics.
2.Before Keynes, the classical economists believed that there could be persistent unemployment in a capitalist economy.
Which of the statements given above is/are correct?
Answer: A
Notes:
Explanation:
- Keynes’ The General Theory of Employment, Interest and Money, published in 1936, is indeed considered the foundation of macroeconomics as a separate branch.
- The classical school believed that the economy would always adjust to ensure full employment. They did not believe in the possibility of long-term, persistent unemployment. It was Keynes who challenged this view after the Great Depression.
Source- 12th NCERT: Economics: Macroeconomics
Discover more from Free UPSC IAS Preparation Syllabus and Materials For Aspirants
Subscribe to get the latest posts sent to your email.
