Sunday, November 6, 2011

How did keynes propose to stabilise the economy in the face of a depression?

He found that the cause of the depression is because the government spent too little. To save the economy, the government then has to spend more. He found also the magic of multiplier effect. The clical economists could not see the depression so long the wage can adjust freely. Keynes has proved that it's not true.

No comments:

Post a Comment