Keynesian policy:
A) shifts aggregate demand with the goal of reaching full employment.
B) includes open market operations by the Fed to increase the money supply.
C) promotes taxing more to boost economic activity.
D) All of these are true.

Question

Quizplus · Accepted Answer

Keynesian policy aims to shift aggregate demand with the goal of achieving full employment. This can be done through measures such as government spending, tax cuts, or interest rate adjustments. Open market operations by the Fed to increase the money supply and taxing more to boost economic activity are not typically associated with Keynesian policy.

Keynesian Policy