Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Introduction

Question:

Which of the following events acted as an inspiration to Keynes for his writings?

Options:

The Great Depression

The Great Recession

Second World War

First World War

Correct Answer:

The Great Depression

Explanation:

The correct answer is Option 1: The Great Depression

Macroeconomics emerged as a separate subject in the 1930s due to Keynes. The Great Depression, which dealt a blow to the economies of developed countries, had provided Keynes with the inspiration for his writings.

Note: Great Recession is a recent phenomenon which lasted from December 2007 to June 2009.