A Keynesian economist would favor stabilizing the economy through:
A) military force.
B) changes in the level of prices.
C) changes in taxes and government expenditures.
D) only private efforts with no government involvement.

Question

Quizplus · Accepted Answer

Keynesian economics advocates for using government policy to manage economic cycles. This includes adjusting taxes and government spending to influence economic activity, making option C the correct choice. Keynesians believe that during recessions, the government should increase spending and/or cut taxes to stimulate demand, whereas in times of inflation, it should do the opposite to cool down the economy.

A Keynesian Economist Would Favor Stabilizing the Economy Through