Answer to Question #310100 in Microeconomics for Vtg

Question

Are Keynes’s ideas still relevant today?”

Answer 1

Yes. The ideas are relevant because he advocated for increased government expenditures and lower taxes to stimulate demand and pull the global economy out of the depression.

The interaction of aggregate demand and aggregate supply determines the level of output and employment in the economy.

Keynesian fiscal expansion policy helps economy in both short and long term.