HIST 1095 Lecture Notes - Lecture 12: Aggregate Demand, Regina Manifesto, Government Spending
28 Jan 2017
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Keynesian state new approach to understanding how the state could take responsibility for insuring that capitalism would not return to the kind of deep depression that had occurred in the 1930s. Notion of aggregate demand/ and the way in which in particular government spending could be used through the multiplier effect, to stimulate economies and start a process in which the various components of aggregate demand would be increased. Government represented by government would rise (government would increase its spending on infrastructure projects) and hire people. E | - i | - c | - bi | - e | c| ( | represents increase)1. For k economists goal is to get economies to full employment rate. Thus, government will continue practicing simulative fiscal policies and engage in deficits spending until the point when full employment is reached involuntarily unemployment (all people who wish to find jobs can do so at going wage rates. )
