Fight of the Century: Keynes vs. Hayek Round Two (1 Viewer)
- Thread starter Bjerknes
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Just use common sense, that's all you need. An increase in revenue for the government means the money has to come from somewhere. Where does it come from? Sucked out of the pockets of taxpayers. So the public now has less money to spend on goods in the overall economy.
You could jazz it up using more flowery terminology, but much of economics is common sense. Just apply it to the topics you covered in class.
You could jazz it up using more flowery terminology, but much of economics is common sense. Just apply it to the topics you covered in class.
meI'm not sure what your test format is, but if it's essay, they should at least give you partial credit.
Sometimes macroeconomic exams can be pretty dry and have questions that don't involve real world scenarios. So at times it helps to relate an exam question to a real life problem. It's easier to think things through that way.
Sometimes macroeconomic exams can be pretty dry and have questions that don't involve real world scenarios. So at times it helps to relate an exam question to a real life problem. It's easier to think things through that way.
That was cool 
But Keynes didn't make convincing points for himself.
But Keynes didn't make convincing points for himself.
Keynesianism is taught in the universities and loved by government because it increases their power. Plus the general public has this whole "they have to do something" approach to the economy, which only consists of free handouts and spending projects from the government. They don't understand that all this stuff doesn't constitute real growth in the private sector, which means no growth in the overall economy, since the government doesn't produce anything. It just takes and spends money.
