According to Keynes's economic theory, macroeconomic trends will restrict the specific behavior of individuals. /kloc-since the late 8th century, "political economics" or "economics" has been based on the continuous development of production to increase economic output, and Keynes believed that the reduction of total demand for goods was the main reason for economic recession.
From this perspective, he believes that measures to maintain the data balance of overall economic activities can balance supply and demand at the macro level. Therefore, Keynes and other economic theories based on Keynesian theory are called macroeconomics, which is different from microeconomics that focuses on individual behavior.
Extended data:
Keynes believed that the level of production and employment depends on the level of total demand. Total demand is the total demand for goods and services of the whole economic system. In microeconomic theory, the automatic adjustment of prices, wages and interest rates will automatically make total demand tend to the level of full employment.
Keynes pointed out that the situation of production and employment deteriorated rapidly at that time, and pointed out that no matter how good the theory was, in fact, this automatic adjustment mechanism did not work. The key to the problem is whether there is "insufficient demand".
After Keynes summarized and integrated a large number of macro concepts from a macro perspective, the development of economics began to jump out of the limitations of price analysis, thus opening a brand-new page of western economics in the 20th century, because a brand-new angle and a brand-new theory were urgently needed to explain and make up for the defects of decadent free capitalism when capitalism developed into monopoly stage.
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