Keynes believed which of the following?
A) The government has a role to play in fighting inflation, but not in fighting unemployment.
B) The government has a role to play in fighting unemployment, but not in fighting inflation.
C) The government does not have a role to play in fighting inflation or unemployment.
D) The government has a role to play in fighting inflation and unemployment.

Question

Quizplus · Accepted Answer

Keynes believed that the government has a role to play in both fighting inflation and unemployment through its fiscal policy tools, such as government spending and taxation. He believed that during times of economic downturns, the government should increase spending to stimulate demand and create more jobs, whereas during times of high inflation, the government should decrease spending and increase taxes to reduce demand and control inflation.

Keynes Believed Which of the Following