Explain the Keynesian concept.

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Answer 1

Question

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 demand will increase. The government spending always has a multiplier effect on an economy. So, it does not matter how much the government spends. That’s why the Keynes says that ‘even a broken window helps the glass man have some wealth’.

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Answer 2

Question

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 demand will increase. The government spending always has a multiplier effect on an economy. So, it does not matter how much the government spends. That’s why the Keynes says that ‘even a broken window helps the glass man have some wealth’.

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Answer 3

Question

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 demand will increase. The government spending always has a multiplier effect on an economy. So, it does not matter how much the government spends. That’s why the Keynes says that ‘even a broken window helps the glass man have some wealth’.

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Answer 4

Question

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 demand will increase. The government spending always has a multiplier effect on an economy. So, it does not matter how much the government spends. That’s why the Keynes says that ‘even a broken window helps the glass man have some wealth’.

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Answer 5

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 demand will increase. The government spending always has a multiplier effect on an economy. So, it does not matter how much the government spends. That’s why the Keynes says that ‘even a broken window helps the glass man have some wealth’.

Answer 6

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 demand will increase. The government spending always has a multiplier effect on an economy. So, it does not matter how much the government spends. That’s why the Keynes says that ‘even a broken window helps the glass man have some wealth’.

Answer 7

Chapter ST4, Problem 1CQ

To determine

Explain the Keynesian concept.

Answer 8

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 demand will increase. The government spending always has a multiplier effect on an economy. So, it does not matter how much the government spends. That’s why the Keynes says that ‘even a broken window helps the glass man have some wealth’.