ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Keynesian macroeconomics argues that the solution to a recession is expansionary fiscal policy, such as tax cuts to stimulate consumption and investment or direct increases in government spending that would shift the aggregate demand curve to the right.

Detailed explanation-2: -Keynesian economics is based on two main ideas. First, aggregate demand is more likely than aggregate supply to be the primary cause of a short-run economic event like a recession. Second, wages and prices can be sticky, and so, in an economic downturn, unemployment can result.

Detailed explanation-3: -According to the author, Keynes believed that it is best to put your investing on autopilot with a sound plan that meets your goals-revisiting it once a year-and then go out and live your life. Keynes was a genius who truly loved life, people, and the world.

Detailed explanation-4: -According to Keynes, the cause of depression and cyclical unemployment in the industrialised capitalist countries was sharp decline in private investment due to the adverse business expectations about profit making.