The heart of Keynesianism is that the government should ______.

Question

Quizplus · Accepted Answer

The heart of Keynesianism is the idea that the government should use fiscal policy to stabilize the economy. This means that during recessions, the government should use deficit spending (spending more than it takes in) to stimulate aggregate demand and boost economic growth. Conversely, during times of economic growth, the government should use surplus spending (taking in more than it spends) to prevent inflation and maintain a stable economy. Therefore, the correct choice is A.

The Heart of Keynesianism Is That the Government Should ______