John Maynard Keynes and the Emergence of Macroeconomics

The correct answer to the question is option 'C', John Maynard Keynes. In 1936, John Maynard Keynes published his book "The General Theory of Employment, Interest, and Money". This book is considered to be one of the most important works in the history of economics, as it introduced the concept of macroeconomics and changed the way economists think about the economy.

Keynes challenged the classical economic theory, which held that the economy would always self-regulate and return to equilibrium. Keynes argued that the economy could remain in a state of prolonged unemployment and that government intervention was necessary to stimulate demand and restore economic growth.

The Emergence of Macroeconomics

Prior to Keynes, economics was primarily concerned with microeconomics, which focused on the behavior of individual consumers and firms. Macroeconomics, on the other hand, is concerned with the overall performance of the economy, including issues such as inflation, unemployment, and economic growth.

After the publication of "The General Theory", macroeconomics became a separate branch of economics. Keynes' ideas influenced the development of macroeconomic theories and policies, including the use of fiscal and monetary policy to stabilize the economy.

Conclusion

In conclusion, John Maynard Keynes' book "The General Theory of Employment, Interest, and Money" marked a significant turning point in the history of economics. It introduced the concept of macroeconomics and challenged the classical economic theory. Keynes' ideas have had a lasting impact on the field of economics and continue to influence economic policies around the world.