Respuesta :
Keynes encourages the use of fiscal policy to return an economy to equilibrium because of the perspective that in the short-run wages and prices are rigid.
According to Keynesian economics, a healthy economy spends or invests more than it saves and that demand drives supply. to increase consumer purchasing power and generate jobs during a downturn. Keynes promoted government spending to reduce business cycle downturns. The two main tenets of Keynesian economics are as follows. First off, a short-run economic event like a recession is more likely to have aggregate demand as its main cause than aggregate supply. Second, in a downturn in the economy, unemployment may occur as a result of sticky wages and prices. Keynesian economics is predicated on two main tenets. First, individuals and organizations exhibit rational behavior and have reasonable expectations. Second, New Keynesian Economics makes a number of assumptions about market inefficiencies, such as fixed wages and unsatisfactory competition.
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