The Keynesian model provides no simple fiscal solution to

Question

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The Keynesian model, which emphasizes the role of government spending and taxation in stimulating or slowing down economic activity, does not offer a straightforward solution to a situation of high unemployment and high inflation, also known as stagflation. This is because the model assumes a trade-off between unemployment and inflation, called the Phillips curve, where decreasing unemployment through expansionary fiscal policy leads to higher inflation, while decreasing inflation through contractionary fiscal policy leads to higher unemployment. In a situation where both unemployment and inflation are high, there is no clear policy prescription that can simultaneously address both issues without causing further harm to the economy.

The Keynesian Model Provides No Simple Fiscal Solution to