Policy Update - Rules changes incoming for AI content - Read Here
Interested in advertising on Derpibooru? Click here for information!
My Little Ties crafts shop

Help fund the $15 daily operational cost of Derpibooru - support us financially!

Description

Head picture of Leslie with a speech bubble. A bit rude perhaps but maybe justified. Although i don’t know who or what a Keynesian is.
 
Made by an MLPOL Anon from the Drawthread on MLPOL.NET

safe2273256 artist:anonymous2325 oc1001714 oc:leslie fair148 earth pony548151 pony1706122 /mlpol/415 drawthread3246 economics35 female1915214 fiscal policy1 happy47368 looking309 open mouth258136 reaction image10729 shut up119 smiling433777 speech bubble44378 text97202

Comments

Syntax quick reference: **bold** *italic* ||hide text|| `code` __underline__ ~~strike~~ ^sup^ ~sub~

Detailed syntax guide

Thorned Rose Ninja
Preenhub - We all know what you were up to this evening~
Artist -

Keynesians espouse an expansionary fiscal policy which seeks to increase aggregate demand enough to reduce unemployment and improve price stability. In contrast, contractionary fiscal policy aims to reduce aggregate demand without worsening inflation.
 
To do this, expansionary fiscal policy (i.e. Keynesian) seeks to increase government spending, decrease net taxes, or some combination of the two. Contractionary fiscal policy (espoused by Hayek) seeks to decrease government purchases and/or increase net taxes. Either results in shifting the aggregate demand curve to the right or left, respectively.
 
The aggregate demand is the total demand for final goods and services in an economy at a certain time; the demand for a country’s gross domestic product (GDP). Both macroeconomic policies aim to get the economy back to its potential output; that is, the economy’s maximum sustainable output where there are no surprises about price level.
Background Pony #2B17
Keynesians, in a nutshell, are proponents of the notion that free market doesn’t necessarily lead to the economic optimum, and that its failings need to be solved through government intervention. As such, they’re partisans of a strong public sector and increased spendings to boost the economy.
 
They’re named after economist John Maynard Keynes, who was the inspiration for Roosevelt’s New Deal in the 30s.