According to the Keynesian concept of efficiency, an efficient tax should be neutral in its effect on free market allocations of economic resources.

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Quizplus · Accepted Answer

The Keynesian concept of efficiency does not necessarily prioritize neutrality in tax effects on market allocations; instead, it often supports using fiscal policy, including taxation, to manage economic cycles and address market failures, which can involve altering free market allocations.

According to the Keynesian Concept of Efficiency, an Efficient Tax