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Does the keynesian framework argue that the government should play a key role in offsetting fluctuating spending by the business sector?
yes
Advantage and disadvantage of keynesian theory?
Disadvantages: -crowding-out effect -time-lag -deficit spending
What actions would a modern Keynesian economist advocate to cure a recessionary gap?
a Keynesian would argue that the essence to solve recession lies with demand management. When an economy is experiencing a boom (inflationary gap), government should tax people, reduce spending ...etc... to soak up the demand. When an economy is experiencing a bust (recessionary gap), government should decrease tax and increase government spending (using money they gained during the boom) to increase the demand of an economy.
What economic theories supports an increase in government spending in order to benefit private industries?
Keynesian theory
The theory that government spending should increase during business slumps and curbed during booms is referred to as?
Keynesian Economics
Does the keynesian framework argue that the government should play a key role in offsetting fluctuating spending by the business sector?
yes
Advantage and disadvantage of keynesian theory?
Disadvantages: -crowding-out effect -time-lag -deficit spending
What actions would a modern Keynesian economist advocate to cure a recessionary gap?
a Keynesian would argue that the essence to solve recession lies with demand management. When an economy is experiencing a boom (inflationary gap), government should tax people, reduce spending ...etc... to soak up the demand. When an economy is experiencing a bust (recessionary gap), government should decrease tax and increase government spending (using money they gained during the boom) to increase the demand of an economy.
What economic theories supports an increase in government spending in order to benefit private industries?
Keynesian theory
What causes a difference between desired spending and income in the monetarist model in the Keynesian model?
In the monetarist model, a difference between desired spending and income is caused by either an excess demand for money (MD > MS) or an excess supply of money (MS > MD). An excess demand for money reduces desired spending, and an excess supply increases it. In the Keynesian model, changes in desired spending (particularly in desired investment spending) cause the difference.
The theory that government spending should increase during business slumps and curbed during booms is referred to as?
Keynesian Economics
Which of these statements is fundamental part of keynesian economics?
The government can use deficit spending to increase aggregate demand and pull the economy out of recession.
To pay for the new deal programs roosevelt abandoned a balanced budget and began using?
... deficit spending as recommended by Keynesian Economics.
What statements is a fundamental part of Keynesian economics?
The government can use deficit spending to increase aggregate demand and pull the economy out of recession.
How did economic events during world war ii demonstrate the principles of keynesian economics?
Economic events during World War II demonstrated the principles of Keynesian economics in the sense that spending had gone done dramatically and the economy was stalled.
How does Keynesian Economics affect today's nation?
The theory that government spending should increase during business slumps and be curbed during booms.
How do Keynesian economics and supply-side economics compare and contrast?
Keynesian economics uses government to increase aggregate demand through both spending and tax cuts. Supply-side economics tries to increase aggregate supply through tax cuts.
