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What is the difference between Keynesian and Marxist economic theory?
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Keynesian economic theory is an economic theory that focuses on macroeconomic analysis and the implications of aggregate demand on output and inflation. It is based upon the work of British economist John Maynard Keynes and is focused around the government taking an active role in the economy. The aim of Keynesian economics is to manage aggregate demand in order to achieve macroeconomic objectives such as full employment, price stability, and economic growth. Marxist economic theory, on the other hand, is a form of economic analysis that focuses on class divisions and the relationship between workers and owners of production. It is based on the works of the German philosopher Karl Marx and the economic theories of Friedrich Engels. It seeks to identify the power dynamics between those who own production and those who do not and how these dynamics lead to different forms of exploitation. Marxists view capitalism as a system based on class struggle and inequality, in which production is geared towards maximum profit for the owners of capital.