The Great Depression

Keynes was a revolutionary figure in the economy during the Great Depression and in the nearly 100 years since.  View the following video and use the following questions as a viewing guide: Go to the following website and watch movie #17 (John Maynard Keynes) by clicking on the ‘17’ button. (Links to an external site.) -or click here- (Links to an external site.) After viewing the movie, answer the following questions as carefully and completely as possible.  Your response must be professionally presented in the assignment entitled “Keynes and the Great Depression”.  Use detailed information from from your previous readings and videos as well.)After viewing the video about Keynes and the Great Depression and learning more about the Business Cycle and Long Run Growth and Stabilization Policy, answer the following questions.  To receive full credit, answer each question completely with a fully formed paragraph. 1. Describe the economy during the Great Depression using the economic indicators we have studied in class (i.e. GDP, UE, inflation, business profits and consumer confidence). 2. Before the Great Depression, classical economists such as Adam Smith, thought the economy would correct itself.   It was also viewed that as long as firms produced goods, there would be people to buy those goods (This is known as “Say’s Law”). What was Keynes’ explanation of the Great Depression? 3. Explain the idea of the multiplier. 4. What did Keynes think should be done to correct the economy? 5. What did FDR do? Why did the economy not correct fully? 6. What impact did WWII have on the economy?

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