Effective keynesian government policies to promote long term economic growth might include:______

1 answer:

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Effective Keynesian government policies to promote long term economic growth might include increasing government expenditures and lowering taxes.

Keynesian government policies are derived from the ideas of British economist John Maynard Keynes who wrote during the time of the Great Depression. It is a macroeconomic theory that focuses on the demand-side approach to economic growth.

Keynes argued that government intervention is required to pull the economy out of its slump and promote long-term economic growth. And this intervention should be with a view to stimulating the aggregate demand, which would in turn lead to full employment.

Keynes advocated increasing government expenditure and cutting taxes to increase demand in the economy.

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