Political Economy Keynesian Economics Questions
Keynesian Economics views long-term economic growth as dependent on aggregate demand and government intervention. According to Keynesian theory, sustained economic growth can be achieved through government policies that stimulate consumer spending and investment. This can be done through fiscal measures such as increasing government spending or reducing taxes, as well as monetary policies like lowering interest rates. Keynesians argue that by boosting aggregate demand, these policies can lead to increased production, employment, and overall economic growth in the long run.