Timothy6340
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- Oct 18, 2011
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- HSC
- 2012
does any one know the main ideas of keynesian theory i am haveing trouble understanding it any help would be great
His main and most famous contribution was through his theories on effective demand, which essentially stated that as economic output is a combination of business, consumer, government and net export expenditures, government has the ability to step into the economy when the private sector refuses to consume (i.e. there is a recession) in order to take up the excess slack in output and ensure standards of living don't start backsliding through a vicious cycle of unemployment and falling consumption.does any one know the main ideas of keynesian theory i am haveing trouble understanding it any help would be great
Probably because he's the only economist they know. It's hard to worship people you don't know exist.Good old keynes, my economics class practically worships him.