Which best summarizes the philosophical difference between economists John Maynard Keynes and Adam Smith
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Economist John Maynard Keynes told the government was crucial to deciphering economic issues, whereas Adam Smith thought the government should take a hands-off approach.
Explanation:
• John Maynard Keynes approach to the economy is a macroeconomic theory of entire expenditures in the economy and their impacts on output, employment, and inflation.
• In his theory, Keynes advocated for raised government expenses and lower taxes to facilitate demand and pull the global economy out of the recession.
• Adam Smith thought that economic development was best promoted in a background of free conflict that governed following universal “natural laws.”
• Smith's was the most organized and detailed research of economics up until that period, his economic reasoning became the footing for classical economics.
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