Sanyatti
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Keynesian economics is an economic theory that was developed by John Maynard Keynes in the early 20th century. It emphasizes the role of government intervention in the economy to stabilize and promote economic growth.
One of the main tenets of Keynesian economics is the idea that the government can use fiscal policy, such as government spending and taxation, to stimulate demand and boost economic activity. Keynes argued that during times of economic downturn, the government should increase spending and cut taxes to encourage consumer spending and business investment.
Another key aspect of Keynesian economics is the importance of aggregate demand in determining economic outcomes. Keynes believed that fluctuations in aggregate demand, rather than changes in the supply side of the economy, were the primary driver of economic cycles.
One of the main tenets of Keynesian economics is the idea that the government can use fiscal policy, such as government spending and taxation, to stimulate demand and boost economic activity. Keynes argued that during times of economic downturn, the government should increase spending and cut taxes to encourage consumer spending and business investment.
Another key aspect of Keynesian economics is the importance of aggregate demand in determining economic outcomes. Keynes believed that fluctuations in aggregate demand, rather than changes in the supply side of the economy, were the primary driver of economic cycles.