The Keynesian Model Of Economics Essay - 897 Words

In an attempt to influence their economy, a government will take certain types of actions. The types of actions that a government will take to influence its economy are inclusive of â€Å"setting interest rates through a federal reserve, regulating the level of government expenditures, creating private property rights, and setting tax rates.† () A government will implement policies to help control, or in some case, help remedy an economic crisis. This essay will be inclusive of three governmental policies, implemented after 1970, to remedy and economic crisis, as well as evaluate the policies effectiveness. This essay will alp provide a brief explanation of how the Keynesian model of economics was applied to the economic crises of the 1970’s. Lastly, there will be an overview of how governments can create demand to correct market failure. Post government policies: AARA, DODD-FRANK- New Keynesian One post 1970 government policy was Passed by both the house and the Senate, the American Recovery and Reinvestment Act of 2009 (ARRA). The focus of this policy was to assist economic recovering, by offering assistance those who were most affected by the recession. This policy was instituted with the purpose of â€Å"spurring technological advances in science and health, investing in infrastructure, and stabilizing state and local government budgets.† Another policy was known as Dodd- frank; The most infamous day for the global financial market, was September 15, 2008. Prior toShow MoreRelatedNeoclassical Theory Of Keynesian Theory1578 Words   |  7 Pagesin the Neoclassical-Keynesian synthesis? In what way does it differ from the Cambridge (UK) view of Keynesian economics? 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