Keynes proposed that the government jolt the economy out of its depression by _____
A) increasing aggregate supply.
B) decreasing aggregate demand.
C) decreasing aggregate supply.
D) increasing aggregate demand.
E) allowing the economy to correct itself.

Question

Quizplus · Accepted Answer

Keynes proposed that the government should increase aggregate demand through increased government spending, lower taxes, and monetary policy. This would create additional demand for goods and services, which would in turn lead to an increase in production and job creation, helping to pull the economy out of a depression.

Keynes Proposed That the Government Jolt the Economy Out of Its