MACROECONOMIC THOUGHTS.PART 6

It deals with short run economic transition using government interventionist policy to agregate demand in order to address and battle economic recession,to a standstill.To respond to the need of the period,against the outdated norms,he was highly critical of the classical tradition,which favoured that natural increasing economic forces and similar incentives guarantees or is adequate to midwive economic recovery.It uses fiscal activism and monetary policy as basic tools to manage economy and fight unemployment.To put it differently it represented a new way of economy's critical assesment,specifically in the area of public spending,output and inflation.Now contrary to classical economic thinking that cyclical swings in employment and output are morally selfadjusting.That the probability of agregate demand fall and the consequences of the weakness linked to production and jobs,ordinarily leads to decline of prices and wages.Moreover,that employers tend to make capital investment and sustainably grow employment,