According to Keynes, the remedy for a recessionary gap was straightforward. The solution was to:
A) increase aggregate supply.
B) increase aggregate demand.
C) control big business.
D) decrease government involvement.

Question

Quizplus · Accepted Answer

According to Keynes, the remedy for a recessionary gap was to increase aggregate demand. This could be done through government spending, reducing taxes or increasing the money supply. By increasing aggregate demand, businesses would have an incentive to produce more goods and services, increasing employment and output.

According to Keynes, the Remedy for a Recessionary Gap Was