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11-22-2004, 01:30 AM #20

That Guy

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Join Date: Jun 2004

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5) If the economy is experiencing unemplyment equilibrium, the Keynesian school recommends that the government:
b) Undertake the fiscal policy to stimulate aggregate demand

keynesians go into deficit spending so businesses are encouraged to increase wages, which in turn increases the money available to invest (ie demand)...

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11-22-2004, 01:30 AM	#20
That Guy Living Legend Join Date: Jun 2004 Location: VA Age: 43 Posts: 17,620	5) If the economy is experiencing unemplyment equilibrium, the Keynesian school recommends that the government: b) Undertake the fiscal policy to stimulate aggregate demand keynesians go into deficit spending so businesses are encouraged to increase wages, which in turn increases the money available to invest (ie demand)...