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Flashcards in Keynesiansim Deck (23):
1

Key Feature of Keynesianism 1 Reduce Gov...

debt

2

Key Feature of Keynesianism 2 what should happen to the market?

Deregulate

3

Key Feature of Keynesianism 3 state run industries should be...

Privatise

4

Key Feature of Keynesianism 4 Cut...

Public spending

5

Along with public spending what according to Keynes should be cut?

Taxes

6

Key Feature of Keynesianism 5 Reduction in ... power

Reducing these would mean a reduction in the states power

7

1st problem with old system, in Keynes' view, of wages at the time of the great depression

Wouldn't fall enough or fast enough

8

When would business' invest if interest rates were low?

when they perceived a possible rise in sales and pofits

9

When would sales rise?

When demand rose

10

Keynes' solutions to great depression NO.1

Borrow money

11

Keynes' solutions to great depression NO.2 create new and... ....

Create new + extra demand

12

Keynes' solutions to great depression NO.3 ... more

Invest more

13

Keynes' solutions to great depression NO.4 ... more

Employ more

14

Keynes' solutions to great depression NO.5

Generate recovery

15

Solutions - gov should NO.1

Borrow money

16

Solutions - gov should NO.2 spend on... .... and ... and investment

Spend on public projects and welfare and investment

17

Solutions - gov should NO.3 .... more than it gains in ....

Make sure its spent more than its taxed

18

Solutions - gov should NO.4 inject ... ... into the economy

Inject extra demand into the economy

19

Accelerator Effects NO.1 ... and ... rise - ... can't keep up

Sales and demand rise - business can't keep up

20

Accelerator Effects NO.2 invest in new ....

Invest in new machines

21

Accelerator Effects NO.3 jobs created in ... sector

Jobs created in the capital sector

22

Accelerator Effects NO.4 more ... generally

More jobs generally

23

Accelerator Effects NO.5 ... spending increase

Public spending increase