According to Keynes, when the economy is in a recession, increased government spending can bring the economy

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According to Keynes, when the economy is in a recession, increased government spending can bring the economy back to full employment. This spending could be on conducting a war with the military or on financing public works projects. Hayekians would alternatively argue that building and dropping bombs only destroys valuable resources. Why would a Keynesian view a war as stimulating?

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Macroeconomics Private And Public Choice

ISBN: 9780357134009

17th Edition

Authors: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

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