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... intervention: Introduction: This paper focuses on government intervention in times of economic down turn, the government has mechanisms to improve the current situation, and this involves the use of appropriate fiscal and monetary policies. Classical economists state that government intervention will only make things worse. Keynes (2007) on other hand states that the free market is not always efficient and the government has a role to play in ensuring that the market is efficient. In the great depression of 1930 government did little to solve the crisis, this depression was characterized by a decline in international trade, a decline in product prices, reduced consumer expenditure and unemployment.