Government can smooth business cycles from "summary" of The General Theory of Employment, Interest, and Money by John Maynard Keynes
The idea that the government can smooth business cycles is a key concept in economics. Business cycles, which refer to the fluctuations in economic activity over time, can have significant impacts on individuals and businesses. During economic downturns, for example, many people may lose their jobs, while businesses may struggle to stay afloat. On the other hand, during economic booms, there may be high levels of inflation and a shortage of goods and services. One way the government can help smooth out these fluctuations is through fiscal policy. By adjusting government spending and taxation levels, the government can influence the overall level of demand in the economy. During times of economic downturn, for example, the government can increase ...
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