Economics: Private and Public Choice (MindTap Course List)
15th Edition
ISBN: 9781285453538
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter ST4, Problem 1CQ
To determine
Explain the Keynesian concept.
Expert Solution & Answer
Explanation of Solution
According to Keynes, only the government intervention with increasing spending can stimulate the economy. When the government spends money, the investments will increase. An increase in the investments cause to increase the employment and thereby the output in an economy. On the final result, aggregate
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Chapter ST4 Solutions
Economics: Private and Public Choice (MindTap Course List)
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