According to the critics of Keynesian economics, the rapid increase in government spending and large budget deficits in response to the recession of 2008-2009
A) exerted little or no impact on aggregate demand and the growth of real GDP.
B) strengthened the recovery process and provided the foundation for strong long-term growth of real GDP.
C) stimulated a more rapid recovery, but caused the economy to fall back into a recession shortly thereafter.
D) exerted a strong impact on aggregate demand and slowed the growth of real GDP.

Question

According to the critics of Keynesian economics, the rapid increase in government spending  and large budget deficits in response to the recession of 2008-2009
A) exerted little or no impact on aggregate demand and the growth of real GDP.
B) strengthened the recovery process and provided the foundation for strong long-term growth of real GDP.
C) stimulated a more rapid recovery, but caused the economy to fall back into a recession shortly thereafter.
D) exerted a strong impact on aggregate demand and slowed the growth of real GDP.

Quizplus · Accepted Answer

Critics of Keynesian economics argue that the increase in government spending and budget deficits had little impact on aggregate demand and real GDP growth, suggesting that these measures were ineffective in stimulating the economy.

According to the Critics of Keynesian Economics, the Rapid Increase