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...
Similar Posts
Banking financial institutions regulatory framework
The regulatory framework for banking financial institutions in India is vital for maintaining stability in the financial system...
Economic growth vital for business sustainability
Economic growth is a fundamental factor for ensuring the long-term sustainability of businesses. When an economy is growing, it...
Understanding the economic development of India
To comprehend the economic development of India, one must delve into the various factors that have shaped the country's growth ...
Racial disparities in economic success
Racial disparities in economic success are a complex issue that is often oversimplified and misinterpreted. Many people mistake...
Economic cycles can provide opportunities for savvy investors
Economic cycles are like the ebb and flow of the ocean - they are inevitable and constantly changing. For savvy investors, thes...
Money is essential for modern economies
Money plays a critical role in modern economies, acting as a medium of exchange that facilitates transactions between buyers an...
Monetary policy affects the money supply
Monetary policy plays a crucial role in regulating the money supply within an economy. By adjusting interest rates and influenc...
Economic power dynamics shape international relations
The relationship between economic power and international relations is a complex and intertwined one. Economic power dynamics p...
Gender equality is crucial for inclusive growth
Gender equality plays a significant role in fostering inclusive growth within an economy. When women are given equal opportunit...
Moral values are the foundation of a healthy society
The fabric of a society is woven from the threads of its moral values. Without a strong moral foundation, a society is like a h...