Then in 1930's came the Great Depression. ... Keynesian economics believes that the free market concept is excellent but it has flaws. ... In the last few years there has been a resurgence of the Keynesian school of though since the collapse of the stock market in 2008. ... Essentially Keynes' math shows markets should not fluctuate but should always be increasing, albeit minor losses here and there; however, markets are naturally cyclical in nature and Keynesian economics does not consider it. Thus the reason why Keynesian economics is best suited for markets attempting to increa...

• Word Count: 1814
• Approx Pages: 7
• Grade Level: Undergraduate

On October 29, 1929 the United States stock market crashed and rocked the country's economy so violently that it didn't start to recover until 1933. ... Producers and consumers alike are still afraid of the market and as such aggregate demand is still suffering. ... One cannot expect the country to come out of the deepest financial meltdown since the Great Depression on its own. The country did not fully recover from the Great Depression until World War II, and the resulting increase in demand. ... This time, the demand will have to strictly come from the government until confidence ...

• Word Count: 1700
• Approx Pages: 7
• Has Bibliography
• Grade Level: High School