No, they regulate the economy by doing 2 things: 1)increasing government spending and decrease taxes to fight recession 2) decrease government spending and increase taxes to fight inflation.
Keynesian theory
Fiscal policy is the way the government uses taxes and spending to stabilize the economy. It is based on the theories of British economist John Maynard Keynes, also known as Keynesian economics.
Fiscal policy is the way the government uses taxes and spending to stabilize the economy. It is based on the theories of British economist John Maynard Keynes, also known as Keynesian Economics.
the classical believe the economy is best left to itself whereas the keynesian argued that government intervention could improve economic performance
a keynesian would spend more money himself (ie, government spending like obama), a supply-side economist would give people money to spend (ie, tax cuts like bush)
An economist is an expert on the economy.
In contrast with Classical economics, Keynesian economics takes a broader view of the economy
An economist studies the economy.
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.
An economist
That the government oversee and regulate the balance of the economy.
takes a broader view of the economy