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failed to provide liquidity to its banks," which caused the great depression; if the government does not intervene, the economy would then head towards full employment. Keynesian economists, on the other hand, believe that the government should intervene actively through means of fiscal and monetary policy to promote full employment and economic growth (with price stability). Moreover, they believe that the cause of the Great Depression was due to the government not intervening as they should have.
The writer assumes that the Great Depression could have been resolved by both the Keynesian method, or the Neo-classical, however, does not state the cause of it or methodology...
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