Keynesian macroeconomists recommend
A)policies that actively offset changes in long- run aggregate supply that result in negative economic growth.
B)policies that minimize the disincentive effects of taxes on employment, investment, and technological change.
C)policies that actively offset changes in aggregate demand that bring recession.
D)an increase in the quantity of money to offset decreases in aggregate demand and a decrease in the quantity of money to offset increases in aggregate demand.
E)none of the above

Question

Quizplus · Accepted Answer

Keynesian macroeconomists recommend policies that actively offset changes in aggregate demand that bring recession. This is because they believe that changes in aggregate demand are the primary drivers of business cycles and that government intervention is necessary to stabilize the economy during periods of recession. The other options are not consistent with Keynesian macroeconomic theory.

Keynesian Macroeconomists Recommend