Solved

According to Keynes,the Goal of Macroeconomic Policy Is Not to Balance

Question 105

True/False

According to Keynes,the goal of macroeconomic policy is not to balance the budget but to achieve equilibrium at full employment.
Keynesian theory highlights the potential of fiscal policy and therefore the budget to solve our macro problems such as equilibrium output that differs from full-employment output.In Keynes's view,a balanced budget would be appropriate only if all other injections and leakages were in balance and the economy was in full-employment equilibrium.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents