Assume the economy is experiencing a recessionary gap. Keynesian economists would support which of the following policies:
A) Nonstabilization
B) Expansionary
C) Nonintervention
D) Fixed wage

Question

Quizplus · Accepted Answer

Keynesian economists would support an expansionary policy to close the recessionary gap. This could involve government spending increases or tax cuts to increase aggregate demand and stimulate economic growth. Nonstabilization and nonintervention policies would not address the problem of a recessionary gap, and fixed wages would not be effective in stimulating economic activity.

Assume the Economy Is Experiencing a Recessionary Gap