In John Maynard Keynes's demand-side economic theory, an economic recession can be shortened throughMultiple Choiceraising tariffs in the global economy.the natural workings of the free-market system.a determination on the part of government not to spend any more than it receives in taxes.government spending programs.tax cuts for the wealthy.
Question
In John Maynard Keynes's demand-side economic theory, an economic recession can be shortened throughMultiple Choiceraising tariffs in the global economy.the natural workings of the free-market system.a determination on the part of government not to spend any more than it receives in taxes.government spending programs.tax cuts for the wealthy.
Solution
In John Maynard Keynes's demand-side economic theory, an economic recession can be shortened through government spending programs.
Here's a step-by-step explanation:
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Keynes's theory, also known as Keynesian economics, argues that demand is the primary driving force in the economy. Therefore, to stimulate the economy, demand must be increased.
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One way to increase demand is through government spending. When the government spends money, it puts money into the hands of businesses and individuals, who can then spend that money on goods and services.
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This increased spending stimulates demand, leading businesses to produce more goods and services to meet this demand. This production requires labor, leading businesses to hire more workers, reducing unemployment.
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As more people are employed and spending money, the economy begins to recover from the recession.
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Therefore, according to Keynes's theory, an economic recession can be shortened through government spending programs.
Similar Questions
Many countries responded to John Maynard Keynes's economic theories by:A.creating programs to protect citizens from economic difficulties.B.giving the government total control over the prices and production of goods.C.reducing tax rates in an effort to get businesses to hire more workers.D.cutting themselves off entirely from foreign trade and investment.
Keynesian economic models emphasize the role of:Question 12Answera.Aggregate demand (AD) and government interventionb.Supply and demand in free marketsc.Long-term economic growthd.Savings and investments
The theory of Keynesian economics emphasizes the role of:Question 9Answera.Aggregate demand (AD) in driving economic activityb.Aggregate supply (AS) in determining price levelsc.Free markets and laissez-faire policiesd.Government regulation of international trade
The tax cuts pushed by President George W. Bush while in office were premised largely onMultiple Choicemonetary policy.helping the lowest-income Americans.supply-side economics.demand-side economics.Keynesian economics.
according to the analysis of the british economist john maynard keynesmarkets coordinate supply and demand so that a policy of laissez-faire would prevent recessions.economic fluctuations were the cumulative result of mistakes made by businesses and households in an uncertain world.government demand could be used to smooth fluctuations in aggregate output and income.supply creates its own demand through the circular flow of economic activity.
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