Question

Which best summarizes the philosophical difference between economists John Maynard Keynes and Adam Smith?

Keynes said government was the key to solving economic issues, while Smith believed government should take a hands-off approach.
Smith said government was the key to solving economic issues, while Keynes believed government should take a hands-off approach.
Smith believed in an "invisible hand" with which government pushes the economy, while Keynes did not agree with this idea.
Keynes believed in an "invisible hand" with which consumers push the economy, while Smith did not agree with this idea.

Answer 1

Key 1: "Keynes said government was the key to solving economic issues, while Smith believed government should take a hands-off approach."

Reason: Smith advocated laissez-faire markets and the "invisible hand" of self-interest; Keynes argued for active government intervention (especially fiscal policy) to manage demand and stabilize the economy.