The idea that the government can stimulate a slow economy by increasing public spending or cutting taxes is called ________.

Question

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The idea that the government can stimulate a slow economy by increasing public spending or cutting taxes is a central principle of Keynesianism, named after economist John Maynard Keynes. Laissez-faire economics, on the other hand, advocates for minimal government intervention in economic affairs. Social democracy refers to a political ideology that combines a capitalist economy with a strong welfare state and social safety net. Monetarism is an economic theory that emphasizes the role of money supply in controlling inflation and economic growth.

The Idea That the Government Can Stimulate a Slow Economy