Please ensure Javascript is enabled for purposes of website accessibility
Search
Accessibility Menu

What Is Keynesian Economics? Theory and How It's Used

By Frank Bass – Updated Feb 7, 2025 at 12:30AM

Key Points

  • Keynesian economics is a theory that government intervention is necessary during downturns.
  • Tax cuts are a tool in Keynesian theory to stimulate economic activity.
  • During recessions, Keynesian policies include measures to reduce unemployment.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.