Keynesians believe that budgetary restraint should be used to cool an overheated economy.
Keynesians believe in government intervention through fiscal and monetary policy to maintain full employment.

Question

Quizplus · Accepted Answer

Keynesians believe that during times of inflation and high economic growth, budgetary restraint through measures such as increasing taxes and reducing government spending should be used to cool down the economy. However, during times of high unemployment and sluggish economic growth, Keynesians advocate for government intervention through fiscal and monetary policy to stimulate the economy and maintain full employment.

Keynesians Believe That Budgetary Restraint Should Be Used to Cool