What did Keynes believe that economies experiencing high unemployment should do?
A)adopt policies to reduce the money supply
B)adopt policies to reduce government expenditures
C)adopt policies to increase aggregate demand
D)adopt policies to increase aggregate supply

Question

Quizplus · Accepted Answer

Keynes believed that in times of high unemployment, governments should adopt policies to increase aggregate demand. This could be done through increased government spending or tax cuts, which would put more money into consumers' pockets and encourage spending, thereby stimulating the economy. This approach is known as Keynesian economics, which emphasizes the role of government in managing the economy during times of recession or depression.

What Did Keynes Believe That Economies Experiencing High Unemployment Should