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9.10: Introduction to Keynesian Policy Implications

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  • What you’ll learn to do: explain policy implications of Keynesian economics

    Stock photo of the globe and lines representing the stock market prices

    By now, you know the basics of Keynesian economics and how it is connected to the AD-AS model. In this section, we will see how Keynesian economics plays out as government policies. You’ll learn about the multiplier effect, the GDP gap, and Keynesian recommendations for reducing unemployment and inflation.

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