Keynesian unemployment

• policies to reduce keynesian demand - deficient unemployment need too raise the level of AD for goods & services

INCREASED GOVE EXPENDITURE

• RAISE LEVEL OF GOV SPEnding
• fiscal pumppriming
• directly increased AD & can have multiplier effect
• sustained economic growth provides a platform for more jobs to be created in the economy

LOWER TAXATION

• reduction in direct taxation increases disposbale Y = spending
• effect may be…