What are some benefits of the keynesian perspective

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Reference no: EM132405875

Most observers recognize that the financial crisis began when the collapse in housing prices led to a series of defaults on mortgage-backed securities. The earliest signs appeared in 2004/2005, and the crisis continued through 2012. The Financial Crisis caused a drop in housing prices and negatively shocked AD resulting in unemployment. During the same period, Congress recognized that economic growth had stalled, and looked to take action. This culminated in the Economic Stimulus Package of 2008. This congressional action is an example of the Keynesian Perspective. What are some benefits of the Keynesian Perspective? What are some of the drawbacks of the Keynesian Perspective?

Reference no: EM132405875

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