Governments typically seek to reduce unemployment by stimulating the economy through monetary or fiscal policy. Using monetary policy they increase the money supply in the hopes of reducing interest rates to spur economic growth. They can also use fiscal policy where they influence the level of taxes or government spending to influence economic development and to reduce unemployment as well.
Answer:
Lethargarians are lazy. When he does see them, Milo realizes there are many of them, everywhere. In addition to their appearance, they are also alike in one thing: they are all doing nothing! They explain to Milo that they aren't allowed to think because it's against the law.
Keynes argued that the private sector was unable to keep the economy at full employment. as a result, the government should take an active role in managing the economy.
<h3>What is a
Keynesian economic theory?</h3>
According to Keynesian economics, the government should raise demand to spur economic growth. Consumer demand, according to Keynesians, is the main engine of an economy. Therefore, the hypothesis is in favor of an expansionary monetary policy. Government spending on infrastructure, unemployment benefits, and education are its key tools. Overusing Keynesian programs has the disadvantage of raising inflation. An economic school of thinking known as Keynesian Economic Theory holds that for economies to recover from recessions, government involvement is required.
To learn more about Keynesian economic theory visit:
brainly.com/question/12556754
#SPJ4