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Dennis_Churaev [7]
3 years ago
7

When president obama was elected, the u.S. Economy had slid into a recession. Consumer spending was low and getting worse. In an

effort to stop the decline, president obama proposed an economic stimulus package that included government spending on roads, bridges, and schools, among other things, and a tax cut that each u.S. Worker would see in her or his paycheck. Apparently, president obama was a proponent of?
Business
1 answer:
Lesechka [4]3 years ago
8 0

Answer: Keynesian Economic Theory

Explanation: The policy adopted by the President was to cut back taxes and increase government spending on road, bridges and schools. This policy of the government is called the expansionary fiscal policy which is used to combat an economy suffering from recession. The Keynesian theory also supports the argument that when an economy is suffering from recession, economic output is influenced by aggregate demand. Thus, the government and use its fiscal policy tools to bring the economy out of recession. It also supports that the Fed can also use its monetary policy to bring the economy out of recession. But since here taxes and government spending are uses, we can say that Obama was a proponent of <em>Keynesian Economic theory</em>.

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positively.

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