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If the economy is in severe recession, which of the following fiscal policies would a Keynesian economist most likely recommend?
The correct answer is that a Keynesian Economist would be most likely to advocate increased spending on public infrastructure if the economy was in recession, even if such an increase results in an increase in budget deficits.
The reason for this is that the Keynesians believe that such an increase in public works spending will lead to an increase in aggregate demand.
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If the economy is in severe recession, which of the following fiscal policies would a Keynesian economist most likely recommend?
The correct answer is that a Keynesian Economist would be most likely to advocate increased spending on public infrastructure if the economy was in recession, even if such an increase results in an increase in budget deficits.
The reason for this is that the Keynesians believe that such an increase in public works spending will lead to an increase in aggregate demand.
Compare your answer with the correct one above