Keynesian Economics

What does it Mean? An economic theory stating that active government intervention in the marketplace and monetary policy is the best method of ensuring economic growth and stability.
Investopedia Says... A supporter of Keynesian economics believes it is the government's job to smooth out the bumps in business cycles. Intervention would come in the form of government spending and tax breaks in order to stimulate the economy, and government spending cuts and tax hikes in good times, in order to curb inflation.

Terms Related Links

Accelerator Theory
Disequilibrium
Dismal Science
Fiscal Policy
Free Enterprise
Friedrich Hayek
ISLM Model
Macroeconomics
Neoclassical Economics
Push On A String

Terms Related Links
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