Keynesianism
A) has been the dominant economic approach used by advanced capitalist countries since the 1980s.
B) is a strain of neoliberal economic theory.
C) emphasizes competition and market-friendly economic policies.
D) emphasizes government regulation of the economy.
E) suggests that governments erect trade barriers.

Question

Quizplus · Accepted Answer

Keynesianism emphasizes the role of government intervention in the economy to manage aggregate demand and address economic fluctuations, which is why option D is correct. It does not primarily focus on competition, market-friendly policies, or erecting trade barriers as its core principles, nor is it a strain of neoliberal economic theory. Since the 1980s, neoliberal policies emphasizing deregulation and free markets have been more dominant than Keynesian policies in many advanced capitalist countries.