Keynesian economics seeks to make the economy perform at maximum capacity by

A) using monetary policy to control the business cycle.
B) encouraging the government to save its revenue for unanticipated hardships.
C) allowing the market to determine the amount of spending and taxing the government requires.
D) allowing the government to spend more during recession.

Keynesian Economics

An economic theory advocating for government intervention to regulate demand in the economy, primarily through fiscal policy.

Monetary Policy

The process by which the monetary authority of a country, like the central bank, controls the supply of money, often targeting an inflation rate or interest rate to ensure economic stability and growth.

Business Cycle

The natural fluctuation of the economy between periods of expansion (growth) and contraction (recession), often influenced by government policy.