Which of the following economic perspectives focuses on the need for government to use spending and taxes to shift aggregate dem

Question

aniked [119]

4 years ago

11

Which of the following economic perspectives focuses on the need for government to use spending and taxes to shift aggregate dem

and and thus correct problems of unemployment and inflation?
A. Supply-side
B. Keynesian
C. Classical
D. Monetarists

Business

1 answer:

ad-work [718] · Answer 1 · 2021-11-26T13:41:35+03:00

Answer:

B. Keynesian

Explanation:

Keynesian economics or theory believes that government can boost the economy and stimulate or increase demand, in times of economic downturn, by increasing spending and lowering taxes.

This increase in government activities will create jobs and reduce unemployment and lead to more spending and investment, by individuals and businesses, in the economy.