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INST 275 – Administrative Processes in Government - page 26 / 34

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The Influence of Keynes

John Maynard Keynes (1883-1946).

Demonstrated how government spending could be critical to managing the economy by stimulating demand when resources were underutilized and unemployment was high.

Created notion of budgetary policy as an instrument by which a nation could execute macroeconomic policy.

Justification for deficit spending to stimulate the economy.

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