Keynesian economics argues that demand drives supply and that healthy economies spend or invest more than they save. To create jobs and boost consumer buying power during a recession, Keynes held that governments should increase spending, even if it means going into debt.
Keynesian economics is a variety of macroeconomic theories and models of how aggregate demand significantly affects economic output and inflation. From a Keynesian perspective, aggregate demand does not necessarily match the economy's capacity. Instead, it is influenced by many factors that affect production, employment, and inflation.
Keynesian economists generally argue that aggregate demand is volatile and unstable, and as a result, market economies often experience inefficient macroeconomic consequences. They further argue that these economic fluctuations can be mitigated through coordinated economic policies between governments and central banks. Fiscal and monetary policy measures, in particular, help stabilize economic output, inflation, and unemployment throughout the business cycle. Keynesian economists generally advocate a regulated market economy. Although primarily the private sector, it plays an active role in government intervention during recessions.
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Answer:
A. Included in GDP under government expenditures
B. Not included in GDP
C. Included in GDP under consumption expenditures
Explanation:
Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.
Gross domestic product can be calculated using the expenditure approach:
GDP = Consumption spending on both durable and non durable goods and services + business spending on cqpital goods + Government Spending on public goods and services + Net Export
Items not included in the calculation of GDP are :
1. Transfer payments
2. Illegal activities
3. Purchase of shares
4. Intermediate goods
I hope my answer helps you
Answer:
that you should pay your own savings and investment accounts first. You are "paying" your future self by saving for your long-term needs and expenses.
Explanation:
Answer:
There was a tremendous drought in California, where the majority of lettuce is grown for the United States. Lettuce is vitally needed to make delicious tacos for Taco Tuesday. As a result of the drought, the price of lettuce used to produce tacos doubles.People get tired of eating tacos on Tuesday and switch to eating lasagna. What happens to lettuce in the short term? reduction in demand and supply which affects the price, such inflation of price would reduce the demand
Explanation:
Answer:
a) 12.5%
Explanation:
Labor force = Unemployed labor + Part time employed + Full time employed = 15 + 25 + 80 = 120
Unemployment rate = Unemployed / Labor force *100 = 15/120 *100 = 12.5%
A. 12.5%
