Answer to Question #174008 in Economics for Julian

Question

What does keynes think of stimulus packages and what policies did he introduce concerning them

Answer 1

During an economic recession, Keynes recommended stimulation of aggregate demand to boost output, jobs, and incomes. In this situation, there is usually a rise in private sector savings and unused resources in the economy. Therefore, if the government borrows and spends, they can help kickstart the economy and provide economic recovery.