Traditional Culture Encyclopedia - Traditional stories - According to the traditional Keynesian analysis, which of the following policies to increase aggregate demand is the most effective? A, tax increase10 billion dollars.
According to the traditional Keynesian analysis, which of the following policies to increase aggregate demand is the most effective? A, tax increase10 billion dollars.
Keynesianism (also known as "Keynesian Economics") is an economic theory based on Keynes's book General Theory of Employment, Interest and Money. Advocate the state to adopt expansionary economic policies to promote economic growth by increasing demand. That is, expanding government expenditure, implementing fiscal deficit, stimulating economy and maintaining prosperity. Keynes's economic theory points out that macroeconomic trends will restrict the specific behavior of individuals. /kloc-Political economics or economics since the late 8th century is based on the viewpoint of continuously developing production to increase economic output. On the other hand, Keynes believed that the reduction of total demand for commodities was the main reason for the economic recession. Based on this, he pointed out that measures to keep the overall economic activity data balanced can balance supply and demand at the macro level. Therefore, Keynes and other economic theories based on Keynesian theory are called macroeconomics, which is different from microeconomics that focuses on individual behavior.
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