In an economic slowdown,Keynesian economic policy would advocate __________.

Question

Quizplus · Accepted Answer

In an economic slowdown, Keynesian economic policy would advocate increasing government spending. This is because government spending can help boost aggregate demand and stimulate economic activity, which can help combat a slowdown. Keynesian economics emphasizes the role of government intervention in the economy, and increasing government spending is one of its key policy prescriptions during a downturn. Increasing inflation, decreasing the money supply, and increasing the unemployment rate are not typically recommended by Keynesian economic theory during a slowdown.

In an Economic Slowdown,Keynesian Economic Policy Would Advocate __________