According to the theory, government spending can be used to increase aggregate demand, thus increasing economic activity, reducing unemployment and deflation. For example, when the unemployment rate is very high, a government can use a dose of expansionary monetary policy. The Keynes theory says, that government should support borrowers and to give them low rates of interest. It means that each in a specific sector invested euro will directly and indirectly promoting other industries development. For example: One new work in the construction industry will create the demand for 3—4 jobs for construction services sectors.
Of course economic isn’t anything simple, there is a lot of things, which can influence economic and policy. So, the right answer how to make our life better doesn’t exist. Adjustment economic result is rarely a predictable. Economy is too difficult system, and to manage it you should have not just a good knowledge’s and a lot of experience, but also a seriously political volition.
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