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