The Keynesian perspective is an economic theory developed by John Maynard Keynes, emphasizing the importance of total spending in the economy (aggregate demand) and its effects on output and inflation. This viewpoint suggests that during periods of economic downturns, government intervention through fiscal policies, such as increased public spending and tax cuts, is necessary to stimulate demand and pull the economy out of recession. The theory also advocates for the use of monetary policy to manage interest rates and encourage investment.
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