What economic policy did economists like John Maynard Keynes promote in response to the Great Depression?

The promotion of increased government spending to stimulate economic recovery by economists like John Maynard Keynes emerged as a critical response to the Great Depression. Keynes argued that during periods of economic downturn, such as the Great Depression, private sector demand typically falls, leading to high unemployment and increased idle capacity. In such scenarios, he believed that government intervention was necessary to boost demand and drive economic activity.

Keynes advocated for greater government spending to compensate for the reduced private investment and consumption, thus stimulating the economy. This approach suggested that, by investing in public works and infrastructure projects, governments could create jobs, increase incomes, and ultimately foster a recovery in consumer spending. This economic theory marked a significant departure from classical economics, which often emphasized limited government intervention and reliance on the self-correcting nature of markets.

The other options presented do not align with Keynesian thought. For instance, reduced government intervention is contrary to Keynes's recommendations for active government engagement in the economy. Increased taxation generally is not aimed at stimulating growth in times of recession, as it could further diminish consumer spending. A return to the gold standard would also be counterproductive to Keynes's view, as it would limit the flexibility of monetary policy needed to respond to economic crises. Thus, the emphasis on increased