Keynesianism involves government ____________.
A) keeping a balanced budget
B) reducing regulation of the economy
C) increasing spending during downturns
D) reducing inflation

Question

Quizplus · Accepted Answer

Keynesianism is an economic theory that encourages government intervention in the economy, particularly during times of economic downturn, by increasing government spending and investments to stimulate demand and job creation. Keeping a balanced budget (A) is not central to Keynesian thinking, as deficit spending is often seen as necessary to boost demand. Reducing regulation (B) is not a primary focus of Keynesianism, as government intervention is seen as necessary to moderate the market's cyclical tendencies. And while reducing inflation (D) is sometimes a goal of Keynesian policies, it is not the central tenet of the theory.

Keynesianism Involves Government ____________