Government intervention can stimulate demand from "summary" of The General Theory of Employment, Interest, and Money by John Maynard Keynes
Government intervention can stimulate demand by directly increasing the total expenditure in the economy. When private individuals or businesses are not spending enough to maintain full employment, the government can step in to fill the gap. This can be achieved through increased government spending on public works projects, such as infrastructure development or social programs. By injecting money into the economy, the government creates demand for goods and services, which in turn stimulates production and employment. This increased economic activity leads to a multiplier effect, where one person's spending becomes another person's income, creating a cycle of spending and production tha...
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