Share This Article:

Economic Definition of Keynesian theory. Defined.

Offline Version: PDF

Term Keynesian theory Definition: A theory of macroeconomics developed by John Maynard Keynes built on the proposition that aggregate demand is the primary source of business cycle instability, especially recessions. The basic structure of the Keynesian theory of economics was initially presented in Keynes' book The General Theory of Employment, Interest, and Money (1936).


« Keynesian range | killer application »


Alphabetical Reference to Over 2,000 Economic Terms