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Question
john maynard keynes believed that governments should increase spending in order to
decrease demand.
increase supply.
increase demand.
increase prices.
John Maynard Keynes' economic theory (Keynesian economics) emphasizes that during economic downturns, governments should use fiscal policy (like increasing spending) to boost aggregate demand. Increasing government spending injects money into the economy, which leads to more demand for goods and services. Decreasing demand is opposite to Keynesian policy. Increasing supply is more related to supply - side economics, and increasing prices is not the goal of government spending in Keynesian theory. So the correct option is the one with "increase demand".
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increase demand