Questions what is the main features of the socialist economy?

Main ideas in The General Theory of Employment, Interest and Money by Keynes.

Key words: Full employment, role of government in economic growth, economic solutions.

The central argument of The General Theory is that the level of employment is determined not by the price of labour, as in classical economics, but by the level of aggregate demand. If the total demand for goods at full employment is less than the total output, then the economy has to contract until equality is achieved. Keynes thus denied that full employment was the natural result of competitive markets in equilibrium.

Keynes believed that unemployment was caused by a lack of expenditures within an economy, which decreased aggregate demand. ... Keynes advocated that the best way to pull an economy out of a recession is for the government to borrow money and increase demand by infusing the economy with capital to spend.

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