Question

Keynesian analysis stresses that a tax cut that increases the government's budget deficit or reduces its budget surplus:____________
a. will increase the money supply.
b. is appropriate during a period of inflation.
c. will stimulate aggregate demand and, thereby, promote employment.
d. will stimulate aggregate supply and, thereby, promote employment.

Answer 1

Keynesian analysis stresses that a tax cut that increases the government's budget deficit or reduces its budget surplus would:  will stimulate aggregate demand and, thereby, promote employment.

\What is Keynesian analysis?

This is used to refer to the economics analysis of Maynard Keynes. He was a foremost economist that lived.

Keynes have the opinion that when the spending of a government is more than the money it generates, the large deficit would help raise aggregate demand.

This would raise government spending and the raise economic activities and decrease unemployment.

Read more on Keynes here: brainly.com/question/1171653