ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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for fighting recession and are an example of neo classical economic thinking
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for fighting credit crashes and are an example of monetarist economic thinking
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for helping economies escape recessions using keynesian economic thinking
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for achieving economic growth and full employment
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Detailed explanation-1: -Under the demand-side model, Keynes advocated for government intervention to help overcome low aggregate demand in the short-term, such as during a recession or depression. This could reduce unemployment and stimulate economic growth.
Detailed explanation-2: -According to demand-side economics, output is determined by effective demand. High consumer spending leads to business expansion, resulting in greater employment opportunities. Higher levels of employment create a multiplier effect that further stimulates aggregate demand, leading to greater economic growth.
Detailed explanation-3: -Is Keynesian Economics Supply-Side or Demand-Side? Keynesian economics is demand-side economics, which believes that demand in the economy is the key driver to growth. The increase or decrease in demand for goods and services impacts how much supply producers bring into the economy.
Detailed explanation-4: -Stabilizing the economy For example, Keynesian economists would advocate deficit spending on labor-intensive infrastructure projects to stimulate employment and stabilize wages during economic downturns. They would raise taxes to cool the economy and prevent inflation when there is abundant demand-side growth.