Zhengzhou Map on The Laffer Curve was the cornerstone of the plan. The Keynesian demand-management policies dominated economic thinking from WORLD WAR II until the early 1970s. The Keynesian theory, named after its originator, John Maynard KEYNES, was conceived during the Laffer Curve 475 Great DEPRESSION of the 1930s. It is based upon the demand side explanation of business cycles.
Keynes believed that a recession is created when there is a decrease in aggregate demand.
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As the country's consumption and investment spending declines, so does production and employment. To stimulate demand, government should increase spending and cut taxes across the board.
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