Answer to Question #293381 in Macroeconomics for Ali

Question

What is the theory of Keynesian Economists?

Answer 1

The Theory of Keynesian Economists

The Keynesian economists, whose theory came to prevalence as a result of the great depression, asserted that measured as the total of firms’, government and household spending, aggregate demand is the fundamental driving force of the economy. On that note, they emphasized the lack of a self-balancing technique in free markets, to achieve a stability in prices and full employment. Thus, they advocated for government intervention through increased expenditure and lowered tax levels. (Aksakal, 2019)

Reference.

Aksakal, B. S. (2019). World bank and keynesian economics. Business and Economics Research Journal, 10(1), 77-94. https://www.ceeol.com/search/article-detail?id=742380