October 13, 2019

MACROECONOMIC THOUGHTS.PART 5

We cannot dispute the fact that when the British economist evolved keynesian economics it was simply oriented and driven by the theoretical and institutional exigencies of the turbulent period.This was perpetrated and initiated in an attempt to understand the great depression of the period during the 30s.The turbulent period naturally influenced the keynesian tradition.the economic theory of total spending and it advocated increased government expenditures and lower taxes,with the purpose of stimulating demand and pull world economy out of depression of the period.Then subsequently,it was used to categorise and quantify the possibility and attainment of the optimal concept of economic performance.To prevent economic slumps and strictly by influencing agregate demand through both stabilisation policy and government interventionist programs.The economic model by its formula was classified as demand driven that is demandside economics as opposed to supply creates its own demand by J.B.Says and classical school.

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