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Keynesians generally believe that wages and prices are 'sticky', a word which here means 'slow to adjust to changes in the market'. In the short-run, Keynesians argue that the market fails to correct itself after disturbances due to stickiness and that direct government intervention - by promoting aggregate demand - can restore equilibrium and thus eliminate welfare loss due to disequilibrium.
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What do the Keynesians believe about the private sector?
As noted above, it is the so-called Keynesian economists who believe that the private sector is inherently unstable.
We are all Keynesians now?
No we are not that happen long time ago we are people wit hskin now but few keynesians are in Africa now
What has the author TIM CONGDON written?
TIM CONGDON has written: 'KEYNES, THE KEYNESIANS AND MONETARISM'
Difference between Keynesian and new Keynesian school of thought?
New Keynesians account for time in their models
Keynesian argue a lack of spending is?
Keynesians argue that a lack of spending leads to decreased demand, which can result in economic stagnation or recession. When consumers and businesses cut back on expenditures, it creates a ripple effect, reducing production, leading to layoffs, and further diminishing consumer confidence. This cycle can perpetuate economic downturns unless addressed through government intervention, such as increased public spending or monetary policy adjustments. In essence, Keynesians believe that active government involvement is necessary to stimulate demand and rejuvenate the economy.
Why do Keynesian prefer fiscal policy to monetary policy?
Keynesians prefer fiscal policy over monetary policy because they believe that during economic downturns, government spending can directly stimulate demand and create jobs more effectively than monetary policy, which can be less impactful in a liquidity trap. They argue that fiscal measures, such as increased public spending or tax cuts, can provide immediate relief and boost aggregate demand, while monetary policy often operates with delays and may not reach consumers effectively. Additionally, Keynesians emphasize the importance of addressing unemployment and underutilized resources, which they believe fiscal policy can target more directly.
Why do you think monetarists tend to be conservatives while keynesians tend to be liberals?
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For what reasons do you have money?
According to John Maynard Keynes (Liquidity Preference Theory - Keynesians), people hold cash for three main reasons: Transactions purposes, precautionary purposes and speculative purposes.
Why might the keynesians be considered to be demand siders while the classicalists could be considered to be supply siders?
Keynesians are considered demand siders because they emphasize the importance of aggregate demand in driving economic activity, advocating for government intervention to boost demand during downturns. They believe that insufficient demand leads to unemployment and economic stagnation, thus supporting fiscal policies to stimulate consumption. In contrast, classicalists are seen as supply siders since they focus on the role of production capacity and supply-side factors like investment, labor, and technology in fostering economic growth. They argue that reducing barriers to production and allowing the market to operate freely will lead to long-term economic expansion.
Summarise the main conclusions of the Keynesians Absolute Income hypothesis and that of Friedman's Permanent Income Theory of consumption?
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What is the similarities between classical and Keynesian school of thoughts in economics?
Keynesians say that government should interven in economic activities where as classical say not too
Which group believed that capitalism was the cause of the Great Depression?
Socialists and Communists were the most fervent believers that capitalism caused the Depression for obvious reasons.However, other groups, such as Keynesians, anarchists and many distributists (in the Catholic Chruch) also believed at least implicitly that capitalism caused the Depression.
