Keynesian economics recommends that during a recession the national government should increase its spending and decrease taxes, and that during a boom, it should

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Keynesian economics suggests counter-cyclical fiscal policies to stabilize the economy. During a recession, it recommends increasing government spending and decreasing taxes to stimulate demand. Conversely, during a boom, it advises reducing government spending and increasing taxes to prevent overheating of the economy, aligning with option C.

Keynesian Economics Recommends That During a Recession the National Government