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Although not explicitly mentioned in Chapter 20, John Maynard Keynes is considered a foundational source in the understanding of macroeconomics. After performing research outside the textbook, please explain in three well-structured paragraphs the basic principles of theNew Keynesian Economicsand how it addresses perceived limitations to classic Keynesian theory.Keynesian or Classical Keynesian was developed by John Maynard Keynes during the times of the Great Depression while trying to understand the great depression (around the 1930s). According to Barnier (2020), Keynesian theory is a way of looking at the effects on output and inflation from the total spending in the economy and also regarded as a “demand-side” theory that emphasis on changes in short-run economy. Keynes encouraged the government to increase spending and lowering taxes, in order to boost demand which will ultimately pull the global economy out of recession. He believed that the collective demand can be endorsed by the government through economic intervention policies and activist stabilization. This focuses very