Explain the Keynesian concept.

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Answer 1

Question

Chapter ST4, Problem 1CQ

To determine

Explain the Keynesian concept.

Expert Solution & Answer

Explanation of Solution

According to Keynes, only the government intervention with increasing spending can stimulate the economy. When the government spends money, the investments will increase. An increase in the investments cause to increase the employment and thereby the output in an economy. On the final result, aggregate demand will increase. The government spending always has a multiplier effect on an economy. So, it does not matter how much the government spends. That’s why the Keynes says that ‘even a broken window helps the glass man have some wealth’.

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Students have asked these similar questions

In the simple Keynesian model, if aggregate expenditure is less than GDP, output will a)decline as firms increase their prices to stop the buildup of inventories b)increase as firms increase production to try to stop depletion of inventories c)remain unchanged indefinitely unless government takes action d)increase as firms cut their prices to try to stop depletion of inventories e)decline as firms cut production to stop the buildup of inventories

Keynes used the term “animal spirits” to refer to business optimism or pessimism that affects investment decisions. policy makers’ willingness to shift AD in response to recessions. the fact that higher income households are likely to have a lower MPC. government spending on farm subsidies.

According to Keynes, wealth or credit is a factor that affects consumption. An example of wealth is A,B,C,OR D one answer a an increase in expected future income. b a decline in interest rates. c an increase in economic output. d an increase in the value of stock

Answer 2

Question

Chapter ST4, Problem 1CQ

To determine

Explain the Keynesian concept.

Expert Solution & Answer

Explanation of Solution

According to Keynes, only the government intervention with increasing spending can stimulate the economy. When the government spends money, the investments will increase. An increase in the investments cause to increase the employment and thereby the output in an economy. On the final result, aggregate demand will increase. The government spending always has a multiplier effect on an economy. So, it does not matter how much the government spends. That’s why the Keynes says that ‘even a broken window helps the glass man have some wealth’.

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Answer 3

Question

Chapter ST4, Problem 1CQ

To determine

Explain the Keynesian concept.

Expert Solution & Answer

Explanation of Solution

According to Keynes, only the government intervention with increasing spending can stimulate the economy. When the government spends money, the investments will increase. An increase in the investments cause to increase the employment and thereby the output in an economy. On the final result, aggregate demand will increase. The government spending always has a multiplier effect on an economy. So, it does not matter how much the government spends. That’s why the Keynes says that ‘even a broken window helps the glass man have some wealth’.

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Answer 4

Question

Chapter ST4, Problem 1CQ

To determine

Explain the Keynesian concept.

Expert Solution & Answer

Explanation of Solution

According to Keynes, only the government intervention with increasing spending can stimulate the economy. When the government spends money, the investments will increase. An increase in the investments cause to increase the employment and thereby the output in an economy. On the final result, aggregate demand will increase. The government spending always has a multiplier effect on an economy. So, it does not matter how much the government spends. That’s why the Keynes says that ‘even a broken window helps the glass man have some wealth’.

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Answer 5

Chapter ST4, Problem 1CQ

To determine

Explain the Keynesian concept.

Expert Solution & Answer

Explanation of Solution

According to Keynes, only the government intervention with increasing spending can stimulate the economy. When the government spends money, the investments will increase. An increase in the investments cause to increase the employment and thereby the output in an economy. On the final result, aggregate demand will increase. The government spending always has a multiplier effect on an economy. So, it does not matter how much the government spends. That’s why the Keynes says that ‘even a broken window helps the glass man have some wealth’.

Answer 6

Chapter ST4, Problem 1CQ

To determine

Explain the Keynesian concept.

Expert Solution & Answer

Explanation of Solution

According to Keynes, only the government intervention with increasing spending can stimulate the economy. When the government spends money, the investments will increase. An increase in the investments cause to increase the employment and thereby the output in an economy. On the final result, aggregate demand will increase. The government spending always has a multiplier effect on an economy. So, it does not matter how much the government spends. That’s why the Keynes says that ‘even a broken window helps the glass man have some wealth’.

Answer 7

Chapter ST4, Problem 1CQ

To determine

Explain the Keynesian concept.

Answer 8

Expert Solution & Answer

Explanation of Solution

According to Keynes, only the government intervention with increasing spending can stimulate the economy. When the government spends money, the investments will increase. An increase in the investments cause to increase the employment and thereby the output in an economy. On the final result, aggregate demand will increase. The government spending always has a multiplier effect on an economy. So, it does not matter how much the government spends. That’s why the Keynes says that ‘even a broken window helps the glass man have some wealth’.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. ST4 - Prob. 1CQ Ch. ST4 - Prob. 2CQ Ch. ST4 - Prob. 3CQ Ch. ST4 - Prob. 4CQ

Explain the Keynesian concept.

Explain the Keynesian concept.

Explanation of Solution

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Chapter ST4 Solutions