What is an economic theory that is based on the principle that taxation, government spending, and other forms of intervention in the economy can help spur the economy forward, even during bad economic times?

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Quizplus · Accepted Answer

Keynesian economics is based on the principle that government intervention in the economy, such as through taxation and spending policies, can help to stimulate economic growth and stabilize the economy during times of economic downturns. This theory emphasizes the importance of government spending to create jobs and boost demand in the economy, as well as using taxation and other policies to redistribute wealth and promote greater overall economic stability.

What Is an Economic Theory That Is Based on the Principle