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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Related Book For
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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