Microeconomics quetion help

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What is Keynesian economics? No copying

Aug 8th, 2015

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Keynesian economics talks about economic recession when savings exceed investments, and inflation when investments exceeds savings. To understand this, it's worthy to note that contrary to the general view, increasing spending during inflation releases the economy while discouraging saving.

Keynesian economics is an economics principle put forward by Keynes. Keynes argued that when saving exceeds investments, then recession happens, and when investments exceed savings,  inflation results. To understand this better, when inflation is high, it is economical wise to encourage spending which discourages savings bringing back the balance. 

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Aug 8th, 2015

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Aug 8th, 2015
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