Molly is a Keynesian economist, which means that she subscribes to the ideas of John Maynard Keynes. She recently began working as an economic advisor to the president. Just when she started her new job, the country spiraled into economic recession. What would Molly probably recommend the president do to fight the recession?

Question

Quizplus · Accepted Answer

As a Keynesian economist, Molly would likely recommend increasing government spending to stimulate aggregate demand and boost the economy. Investing in public infrastructure would create jobs and generate economic growth, thus helping to combat the recession. The other options of cutting subsidies, slashing welfare programs, and reducing unemployment benefits are more aligned with conservative economic theories that prioritize limited government intervention and reduced spending.

Molly Is a Keynesian Economist, Which Means That She Subscribes