Can You Explain The Fiscal Theory According To Keynesian Economist?

For centuries, economists have understood the allocational role of fiscal policy, government tax and spending programs. It has long been known that trough these programs the government decides. How much of nation's output should be divided between collective and private consumption and how the burden of payment for collective goods should be divided among the population.

Only with the development of modern macroeconomic theory has a further surprising fact been uncovered: Government fiscal powers also have a major impact upon the short run movements of output, employment, and prices. The knowledge that fiscal policy has powerful effects upon economic activity led to the Keynesian approach to macroeconomic policy, which is the active use of government action to moderate business cycles. The eminent Keynesian economists, James Tobin, described the approach as follows:
Keynesian policies are first the explicit dedication of macroeconomic policy instruments to real economic goals, in particular full employment and real growth of national income. Second, Keynesian demand management is activist. Third, Keynesian has wished to put both fiscal and monetary policies in consistent and coordinated harness in the pursuit of macroeconomic objectives.

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