Answered

Get the answers you need at Westonci.ca, where our expert community is always ready to help with accurate information. Connect with a community of experts ready to provide precise solutions to your questions quickly and accurately. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

Which policy suggests Keynesian economic theory?

A. Proposing long-term solutions in order to create wider swings in the business cycle
B. Short-term increases in government spending to stimulate the economy
C. Reducing government involvement in the free-market economy
D. Creating a national banking system that owns and operates most of the global and regional banks

Sagot :

GinnyAnswer

Final answer:

Keynesian economic theory recommends using fiscal policies to address economic challenges such as recessions and inflation.


Explanation:

Keynesian economic theory suggests using expansionary fiscal policy during a recession, such as increasing government spending or implementing tax cuts to stimulate the economy by shifting the aggregate demand curve to the right. On the other hand, contractionary fiscal policy, like tax increases or government spending cuts, is recommended when the economy is operating above potential GDP to combat inflation.


Learn more about Keynesian economic theory here:

https://brainly.com/question/34785944


Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.