If an economy is experiencing a recession,the Keynesian approach to achieving full employment is to:
A) Use various supply-side options,such as deregulation.
B) Decrease the growth of the money supply.
C) Do nothing.
D) Employ expansionary fiscal policy.

Question

Quizplus · Accepted Answer

The Keynesian approach suggests using expansionary fiscal policy during a recession to achieve full employment. This involves increasing government spending and/or decreasing taxes to stimulate aggregate demand in the economy. This leads to an increase in economic activity, creating jobs and reducing unemployment. Therefore, this is the best choice for achieving full employment during a recession according to the Keynesian approach.

If an Economy Is Experiencing a Recession,the Keynesian Approach to Achieving