Which of these statements is a fundamental part of Keynesian economics?

a. The federal government should have a balanced budget every year to protect economic growth.

b. The government should reduce taxes to promote economic growth by increasing aggregate supply.

c. The government can use deficit spending to increase aggregate demand and pull the economy out of recession.

d. The economy will only reach equilibrium and prosperity through the self-regulation of the free market.

Question

Alec Herrera

30 June, 15:26

+3

Answers (2)

Know the Answer?

Maxim Washington · Answer 1

c. The government can use deficit spending to increase aggregate demand and pull the economy out of recession.

Kailyn Cain · Answer 2

c. The government can use deficit spending to increase aggregate demand and pull the economy out of recession.