USA HISTORY

Detailed explanation-1: -Keynesian economics is sometimes referred to as “depression economics, ” as Keynes’ General Theory was written during a time of deep depression-not only in his native United Kingdom, but worldwide.

Detailed explanation-2: -Keynesian unemployment is also known as “demand-deficient unemployment” or “cyclical unemployment, ” as it is often caused by a downturn in real economic activity (a recession or economic crisis).

Detailed explanation-3: -In Keynesian analysis if everyone thinks that a budget deficit malces them wealthier, the resulting expansion of aggregate demand raiscs output and employment and thereby actually malces people wealthier, (This result holds if the economy is in a state of “involuntary unemployment").

Detailed explanation-4: -What Is Demand-Side Economics? Keynesian economists believe that the primary factor driving economic activity and short-term fluctuations is the demand for goods and services. The theory is sometimes called demand-side economics.