According to Keynes,which of the following can be used to slow down an overheated economy?
A)Decrease government purchases.
B)Decrease taxes.
C)Make more money available.
D)Employ more people.

Question

Quizplus · Accepted Answer

According to Keynes, decreasing government purchases is the best choice to slow down an overheated economy. This is because when the government spends less, there is less demand for goods and services, which can help cool down the economy and prevent inflation. Decreasing taxes or making more money available (through monetary policy) can actually increase demand and lead to inflation. Employing more people can also increase demand and drive up wages, leading to inflation.

According to Keynes,which of the Following Can Be Used to Slow