The Keynesian recommendation for a policy response to a recession consists of
A) increased government spending with tax cuts.
B) decreased government spending with tax cuts.
C) increased government spending with tax increases.
D) decreased government spending with tax increases.

Question

Quizplus · Accepted Answer

The Keynesian approach uses increases in government spending and tax cuts to combat the effect of recessions.

The Keynesian Recommendation for a Policy Response to a Recession