Question

Keynesian macroeconomics is said to be irrelevant for developing countries like India. Do you agree? Explain briefly.​

Answer 1

Answer:

HERE IS YOUR ANSWER DEAR

Explanation:

The Relevance of Keynesian Economics to Developing Countries: Traditional and Modern View!

Keynesian theory was mainly concerned with cyclical unemployment which arose in industrialised capitalist countries especially in times of depression. During the period of Greet Depression (1929-33), the developed capitalist countries faced a drastic fall in GNP resulting in severe unemployment.

J.M. Keynes explained that it was fall in aggregate effective demand for goods and services that was responsible for depression and huge unemployment that arose during the period of depression. Keynes put forward a theory of income and employment which explained the determination of income and employment through aggregate demand and aggregate supply.