A policy implication of Keynesian economics is that
A) full employment will always be maintained.
B) countercyclical policies have no effect on the economy.
C) constant growth of the money supply is better than discretionary policies.
D) countercyclical monetary and fiscal policies can be used to achieve full employment.

Question

Quizplus · Accepted Answer

Keynesian economics emphasizes the use of countercyclical monetary and fiscal policies, such as increasing government spending and reducing taxes during times of recession, and decreasing government spending and increasing taxes during times of economic expansion, to achieve full employment.

A Policy Implication of Keynesian Economics Is That