Asked by
La’Nihya Jones
on Oct 13, 2024Verified
Keynesians tend to believe that
A) laissez-faire policies stabilize market economies.
B) recessions are temporary.
C) expansionary government spending and tax cuts are cures for recessions and depressions.
D) in the short run,aggregate supply should be manipulated to stabilize the economy.
Expansionary Government Spending
Expansionary government spending involves increased public expenditures aimed at stimulating economic growth, typically during periods of economic downturn or recession.
Recessions
Phases of transitory economic regression that see a drop in business and industrial activities, typically identified by a GDP decrease across two back-to-back quarters.
- Gain insight into the Keynesian approach towards maintaining macroeconomic stability, focusing on government actions and monetary policy intervention.
- Recognize the implications of Keynesian economics for managing recessions and depressions.
Verified Answer
KC
Learning Objectives
- Gain insight into the Keynesian approach towards maintaining macroeconomic stability, focusing on government actions and monetary policy intervention.
- Recognize the implications of Keynesian economics for managing recessions and depressions.