The idea that the government should increase spending in times of economic struggle to raise demand for goods and services is characteristic of which economic theory?

Question

Quizplus · Accepted Answer

This is a central tenet of Keynesian economic theory, which states that government intervention is necessary to stabilize the economy during times of recession or depression. Keynesian theory suggests that increased government spending will stimulate demand for goods and services, leading to increased production and employment.

The Idea That the Government Should Increase Spending in Times