human
I'm trying to get a better understanding of economic systems. Can you explain Keynesian economics?
assistant
Keynesian economics is an economic theory that was developed by British economist John Maynard Keynes during the 1930s. Its main focus is on using government intervention to stimulate a nation’s economy to try and reduce unemployment and control the economy’s fluctuations. It is based on government spending and taxation, which can be used to adjust the total demand in the economy and affect the aggregate supply. The basic idea behind Keynesian economics is that during periods of economic downturn, increased government purchasing power can help to stimulate the economy, leading to more economic growth and therefore less unemployment.