How did the Keynesian perspective address the economic market failure of the Great Depression?

The Keynesian perspective, developed by economist John Maynard Keynes, addressed the economic market failure of the Great Depression by emphasizing the importance of increasing aggregate demand and government spending. Through augmenting spending in areas like infrastructure and public works, employment levels were expected to rise, incomes to increase, and demand to return to the economy. Supported by the Keynesian multiplier effect, each dollar spent by the government would generate more than one dollar in economic growth. Additionally, Keynesians advocated for expansionary monetary policies, such as lowering interest rates and increasing the money supply, to stimulate lending and investment. These actions encouraged economic growth and helped the economy recover from the depression. Today, the Keynesian perspective continues to shape economic policy and influence the way governments and central banks address economic issues and manage economic fluctuations.