After the US Great Depression of the 30s, J.M. Keynes came up with Keynesian economics.
His theory, centered around aggregate demand and its influence over the overall level of economic activity, lead to the introduction of various fiscal stimulus schemes, which can theoretically, for example, pull an economy out of a recession.
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Similar ideas to Keynes, John Maynard Keynes
John Maynard Keynes (1883-1946) was interested in the level of national income and the volume of employment rather than in the equilibrium of the firm or the allocation of resources.
He was still concerned with the problem of demand and supply, but “demand” in the Keynesian model means the...
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