Solution to the Puzzle
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Manage aggregate demand!
- Keynes came to Washington,
- met with President Roosevelt, and
- proposed the right amounts of government spending necessary to overcome the
American insufficiency of demand.
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So disturbed was Congress by the
prospect of 3.5 million soldiers returning from World War II to the
American workforce ... Reversing a tradition of laissez faire, the Age of Keynes set in motion decades of governmental management of macroeconomic affairs.
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