Definition of Keynesian Economics

Keynesian Economics is an economic theory that states that government intervention in the market place helps sustain economic growth.

Applying "Keynesian Economics" to Securities Exams:

John Maynard Keynes was an economist whose theories became prominent in the 1930s and remain widely followed by economists today. Keynesian Economics believes that the majority of economic output will come from the private sector but during times of economic inefficiencies and downturns that government policy can play important roles. Keynes believed that both monetary and fiscal policies could be enacted to ensure economic stability.

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