Question

What are the effects of the Keynesianism?

Answer 1

Keynesian economics is also known as demand side economics and economics based on the time period and government role. Keynesian model reveals that money injected by government in the citizenry rises the aggregate demand and supplier increases output to meet the demand and cause income , output and employment in the economy

Impact of Keynesian - Aggregate demand is the major component of Keynesian economics. It is the aggregate demand , which increase the income , output and employment in the economy and lowers the inflation. It will also have positive impact for the government. The reason is that with increase in government spending , people will pay taxes and income generation for government will take place.