Answered

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According to Keynes, the remedy for a recessionary gap was straightforward. The solution was to: A. increase aggregate supply. B. increase aggregate demand. C. control big business. D. decrease government involvement.

Sagot :

eooyibo123

Answer:

B. increase aggregate demand

Explanation:

A recession is a period characterised by reduced demand for goods and services. There is excess supply and prices of products tend to fall.

As a result of a decline in economic activity and price of goods, unemployment increases.

According to Keynes since the cause of a recession is reduced demand, the solution are strategies targeted at increasing aggregate demand.

When this happens people spend more and businesses will be able to employ more people, resulting in increased economic growth

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