Who coined the concept of \u201cParadox of Thrift\u201d?<\/p>\n
[amp_mcq option1=”Adam Smith” option2=”Alfred Marshall” option3=”John Maynard Keynes” option4=”Paul A. Samuelson” correct=”option3″]<\/p>\n
* John Maynard Keynes introduced and popularized this concept in his work, particularly “The General Theory of Employment, Interest and Money” (1936). Who coined the concept of \u201cParadox of Thrift\u201d? [amp_mcq option1=”Adam Smith” option2=”Alfred Marshall” option3=”John Maynard Keynes” option4=”Paul A. Samuelson” correct=”option3″] This question was previously asked in UPSC CAPF – 2019 Download PDFAttempt Online The correct answer is C) John Maynard Keynes. The concept of the “Paradox of Thrift” is a central idea in Keynesian economics. … <\/p>\n
\n* The Paradox of Thrift suggests that if, during a recession, individuals and households collectively decide to save more money, it can lead to a decrease in aggregate demand, a reduction in economic growth, and paradoxically, a potential decrease in overall saving for the economy as a whole, because incomes fall. While individual saving is prudent, mass saving can be detrimental to the macroeconomy during a downturn.
\n* Adam Smith is known as the father of classical economics and focused on concepts like the invisible hand, free markets, and division of labour.
\n* Alfred Marshall was a leading figure in neoclassical economics, contributing significantly to microeconomic theory like supply and demand, marginal utility, etc.
\n* Paul A. Samuelson was a prominent 20th-century economist who helped synthesize classical, neoclassical, and Keynesian economics. While he discussed the Paradox of Thrift, the concept is primarily attributed to Keynes.
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