Keynesian Economics

Created: 2022-12-27
Status: #soil
Last Edited: 2022-12-27
Topic: economics

What is Keynesian Economics?

Keynesian economics is a macroeconomic theory based on the ideas of John Maynard Keynes, a British economist who lived from 1883 to 1946.

### What is the focus of Keynesian Economics?

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The theory focuses on the role of aggregate demand in determining total output, employment, and inflation in an economy. Keynesian economics contends that government intervention in the form of fiscal policy is necessary to promote economic growth and stability.

This intervention includes both tax cuts and spending increases by the government to stimulate demand in the economy. Keynesian economists also advocate for central bank intervention in order to manage interest rates and regulate money supply.