The idea that the government can stimulate a slow economy by increasing public spending or cutting taxes is called

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The idea that the government can stimulate a slow economy by increasing public spending or cutting taxes is a central tenet of Keynesian economics. This economic theory was developed by British economist John Maynard Keynes during the Great Depression, and it argues that the government should use fiscal policy (spending and taxation) to increase demand in the economy and promote growth. This approach stands in contrast to laissez-faire economics, which advocates for minimal government intervention in the economy, and monetarism, which focuses on regulating the money supply to stabilize the economy. While social democracy shares some similarities with Keynesianism, it is a broader political philosophy that encompasses a range of economic theories and policy approaches.

The Idea That the Government Can Stimulate a Slow Economy