Question

The most influential economics book, the “General Theory of Employment, Interest and Money” of the twentieth century written by John Maynard Keynes, was published in the year ________.

• A. 1883
• B. 1919
• C. 1929
• D. 1936

Hint:

Keynesian Economics began with the publication of The General Theory in 1936, establishing the foundation of modern macroeconomic analysis.

Answer 1

The Correct Option is D

Concept:
Modern macroeconomics as an independent sub-discipline emerged largely in response to the economic crisis of the Great Depression of 1929.
British economist John Maynard Keynes formulated a groundbreaking theoretical paradigm challenging classical laissez-faire economics.

Step 1: Historical Context and Publication:
During the 1930s, classical doctrines failed to explain prolonged global unemployment and underutilized capacity.
Keynes published his landmark treatise titled The General Theory of Employment, Interest and Money in the year 1936.
The book advocated government intervention through fiscal policies to manage aggregate demand during recessions.

Step 2: Evaluating Distractor Years:
- 1883: The year of Keynes' birth (and the death of Karl Marx).
- 1919: The year Keynes published The Economic Consequences of the Peace.
- 1929: The onset of the Great Depression following the Wall Street stock market crash.
Final Answer:
Keynes' famous book was published in 1936. Therefore, option (D) is correct.