What did the Keynesian approach to fiscal policy call for?
A) budget deficits during periods of inflationary pressure
B) budget surpluses during periods of high unemployment
C) a balanced budget despite the state of the economy
D) tax cuts during recession

Question

What did the Keynesian approach to fiscal policy call for?  
A) budget deficits during periods of inflationary pressure 
B) budget surpluses during periods of high unemployment 
C) a balanced budget despite the state of the economy 
D) tax cuts during recession

Quizplus · Accepted Answer

The Keynesian approach to fiscal policy called for tax cuts during a recession to stimulate economic growth and increase consumer spending. This would help to boost employment and overall economic activity.

What Did the Keynesian Approach to Fiscal Policy Call For