Modern Keynesians believe the government should use a policy of laissez faire to address a recession.
Modern Keynesians believe the government should manage AD through both fiscal and monetary policy.

Question

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Modern Keynesians believe that during a recession, the government should take an active role in managing aggregate demand through both fiscal and monetary policy. Laissez faire, which advocates for minimal government intervention in the economy, is not a policy favored by Keynesians.

Modern Keynesians Believe the Government Should Use a Policy of Laissez