14 Questions
According to Keynesian economics, what is the primary focus for managing the economy?
Active government policy
What is the central belief of Keynesian economics?
Government intervention can stabilize the economy
What did Keynes advocate for based on his theory of Keynesian economics?
Increased government expenditures and lower taxes
In Keynesian economics, what are the primary tools recommended to manage the economy and fight unemployment?
Activist fiscal and monetary policy
According to Keynesian economics, what can achieve optimal economic performance and prevent economic slumps?
Influencing aggregate demand through economic intervention by the government
What is the focus of Keynesian economics in terms of total spending in the economy?
Effects on output, employment, and inflation
According to Keynesian economics, what intervention can achieve full employment and price stability?
Increase in government spending
What was the main criticism of Keynes against the British government at the time?
Balanced budget without government intervention
In Keynesian economics, what is the effect of excessive saving on the economy?
Dangerous for the economy
What did Keynes propose as a solution to economic misery?
Government deficit spending
According to Keynesian theory, what is one of the chief components of fiscal policy?
Multiplier effect
What did Keynes argue against, as represented in his book The General Theory of Employment, Interest and Money?
Classical economic theory during deep depression
What is another name for Keynesian economics, based on the context provided?
Depression economics
According to Keynes' proposal, what would an increase in consumer demand lead to?
Increase in overall economic activity and reduction in unemployment
Explore the key takeaways from Keynesian economics, which emphasizes active government policies to manage aggregate demand and address economic recessions. Learn about activist fiscal and monetary policies recommended by Keynesian economists to fight unemployment and stabilize the economy.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
