What are the main points of Keynesian theory?

In an economic downturn, unemployment can result as the prices and wages can be sticky. The primary cause of a short-run economic event like a recession is because aggregate demand is more likely than aggregate supply. These are the main points of Keynesian theory. You can read about the Monetary System – Types of Monetary System (Commodity, Commodity-Based, Fiat Money) in the given link.

Further readings:

  1. Inflation in Economy- Types of Inflation, Inflation Remedies [UPSC Notes]
  2. Indian Economy Notes For UPSC Exam [Download PDFs]

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