Keynes proposed that government should shock the economy out of the Great Depression by
A)increasing aggregate supply
B)increasing aggregate demand
C)raising prices so that firms could earn higher profits and employ more people
D)reducing prices so that people could afford to buy more goods and services
E)subsidizing firms that wanted to buy stocks after the crash

Question

Quizplus · Accepted Answer

Keynes proposed increasing aggregate demand as a way to shock the economy out of the Great Depression. This involved increasing government spending and investment in order to stimulate demand and create jobs.

Keynes Proposed That Government Should Shock the Economy Out of the Great