During a recession,Keynesians are in favor of tax cuts or spending increases to stimulate the economy and start the multiplier process.

Question

Quizplus · Accepted Answer

Keynesians believe that during a recession, the government should use fiscal policy, such as tax cuts or spending increases, to increase aggregate demand and kickstart the multiplier effect. This is because they believe that the market cannot always self-correct and may require government intervention to recover from an economic downturn.

During a Recession,Keynesians Are in Favor of Tax Cuts or Spending