Fiscal policy to solve short-run economic problems supports the Keynesian notion of
A)there being no government role in the economy.
B)an active government role in the economy.
C)the need for autocratic rule.
D)the long-run nature of the economy.

Question

Quizplus · Accepted Answer

Fiscal policy is an economic tool used by governments to influence the economy by adjusting government spending and taxation. Keynesian economics emphasizes the role of government in managing the economy, especially during economic downturns. Therefore, fiscal policy to solve short-run economic problems supports the Keynesian notion of an active government role in the economy.

Fiscal Policy to Solve Short-Run Economic Problems Supports the Keynesian