How do Keynesian economic policies differ from the traditional laissez-faire policies developed by Adam Smith?

Question

Quizplus · Accepted Answer

Keynesian economics advocates for increased government interventions to stabilize the economy during recessions, including increased government spending and taxation. Traditional laissez-faire economics advocates for a hands-free approach with minimal government intervention in the economy. Thus, the two approaches differ greatly in terms of the role of government in the economy. The statements in the other options are not accurate representations of the differences between the two economic policies.

How Do Keynesian Economic Policies Differ from the Traditional Laissez-Faire