The government of Auspicia increases taxes and cuts spending during a recession. Which of the following is likely to happen in in Auspicia according to the Keynesians?

Question

Quizplus · Accepted Answer

Keynesians believe that during a recession, the government should increase spending and decrease taxes to stimulate economic activity. By increasing taxes and cutting spending, the government of Auspicia will decrease economic activity and potentially worsen the recession.

The Government of Auspicia Increases Taxes and Cuts Spending During