Question

In three or less sentences, describe Keynesian economics.

Answer 1

Keynesian economics is the economic philosophy of overall consumption in the economy and its effect on production and inflation.

Keynes proposed increased government spending and lower taxes to stimulate demand and bring the global economy out of crisis.

Subsequently, Keynesian economics was used to refer to the idea that optimum economic output could be achieved – and economic slumps avoided – by manipulating aggregate demand through the government's activist stabilization and economic intervention policies, Keynesian economics is considered a "demand-side" philosophy that focuses on shifts in the economy in the short term.