The Keynesian approach to government economic policy:
A)has emphasized the role of individual self-interest as a powerful stabilizing force.
B)has consistently failed to reduce fluctuations in economic activity.
C)was ineffective during the 1960s.
D)highlighted the role of aggregate demand.
E)was rechristened supply-side economics around 1980.

Question

Quizplus · Accepted Answer

The Keynesian approach to government economic policy emphasized the role of aggregate demand in stabilizing the economy. This meant that government intervention could help smooth out economic fluctuations by boosting demand during downturns and curbing it during booms.

The Keynesian Approach to Government Economic Policy