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All of the phenomena we observe in the economic system can be best explained by Keynesian economic theory.
What is the Keynesian school of economics?
The production is affected by changes in all sorts of spending, include government, investment, and private consumption, according to Keynesians, because prices are currently relatively stable. As an illustration, if government expenditure rises whilst other spending elements stay the same, output will rise.
The broad category of macroeconomic theories and models known as "Keynesian economics" explains how aggregate demand has a considerable impact on both economic production and inflation. The Keynesian perspective holds that the level of total demand need not match the economy's capacity for output.
What are Keynesian economics' two main tenets?
In Keynes' view, the best way to combat the Great Depression was to encourage investment by either lowering interest rates (monetary policy) or by some other combination of the two. Public spending on infrastructure (fiscal policy).
Learn more about keynesian economics: https://brainly.com/question/28190517
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