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Keynesian economics essay

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Please join StudyMode to read the full document. Lawal G. Explain how this solution works and are there other solutions to the problem of unemployment? In the world Libya is noted to have the highest rate of unemployed citizens.
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Keynesian Economic Policy Analysis

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Keynesian Economics Essay | Bartleby

Should governments borrow and spend their way out of trouble or slash spending and reduce the national debt? Keynes saved. John Maynard Keynes, a British economist also known as the founder of macroeconomics, saw this as an opportunity and began to develop alternative ideas. His alternative ideas led to the idea of Keynesian economics.
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Keynesian Economics

As a result, the theory supports the expansionary fiscal policy. President Franklin D. Roosevelt used Keynesian economics to build his famous New Deal program. That meant an increase in spending would increase demand. Second, Keynes argued that government spending was necessary to maintain full employment.
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Two of these different policies can create an impact upon the marketing economy where it might help to improve the unemployment, increase consumer spending and to lower interest rates. The fiscal policy was supported by John Keynes that he proclaims the government should control the interest rates by putting more money into the Federal Reserve Bank and also to cut taxes, so the people can able to spend money. Furthermore, he especially claims that President Roosevelt has led the economy out of the Great Depression by using fiscal policy.
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