Keynes believed

A) lowering wages could cure a depression.
B) the interest rate was more important than the expected rate of profit in determining the level of investment in an economy.
C) our economy always tends toward full employment.
D) aggregate demand was more important than aggregate supply in the short run.

Keynes

An economist who revolutionized economic thinking with theories on government spending's effects on economic cycles.

Depression

A prolonged and severe downturn in economic activity, characterized by significant unemployment, declining output, and deflation.

Interest Rate

The component of a loan levied as interest to the borrower, usually characterized as an annual percentage of the outstanding loan value.