Keynesian unemployment

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  • Created by: Lottie
  • Created on: 21-05-12 12:54
  • 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…

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