Question

Keynesian economists believe that the economy needs to be influenced in order to correct itself from the effects of unemployment and inflation. This can be done through ________ policies.
a. monetary
b. accounting
c. fiscal

Answer 1

Answer: fiscal policy

Explanation:

Fiscal policy simply means when the revenue and expenditure of the government is used to influence the economy of a particular country.

Keynesian economists believe that the economy needs to be influenced in order to correct itself from the effects of unemployment and inflation. This can be done through fiscal policies. According to the Keynesians, the demand from consumers has an effect on the aggregate expenditure.