lesson on Keynesian Economics
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
a lesson on
Keynesian Economics
Origin of Keynesian Economics
Capitalism is inherently unstableIt has no natural tendency toward full employmentPeople acting in
their best interest won’t always help the economyGovernment should
stimulate the economyThrough public works spending
Y=C+I
Y=C+I+G
War Preparations begin
New Deal Begins
Roosevelt cuts back on stimulus
Monetarism has been tried in Great BritainIt sunk them into a deep recession
Keynesian Policy can cause too much debt
Conclusion