Keynesian macroeconomic theory has been summarized as the idea that

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Keynesian macroeconomic theory emphasizes that demand creates its own supply, meaning that the level of demand in the economy determines the level of production and employment. Keynes argued that in the short run, when there is insufficient demand, the economy can experience unemployment and underutilization of resources. Therefore, government intervention is necessary to stimulate aggregate demand and achieve full employment.

Keynesian Macroeconomic Theory Has Been Summarized as the Idea That