Asked by Julia Ellinghaus on May 16, 2024
Verified
The Keynesian approach to economic policy is also known as:
A) supply-side economics.
B) Classical economics.
C) demand-side economics.
D) mercantilism.
E) laissez-faire.
Demand-Side Economics
Macroeconomic policy that focuses on shifting the aggregate demand curve as a way of promoting full employment and price stability
Supply-Side Economics
Macroeconomic policy that focuses on a rightward shift of the aggregate supply curve through tax cuts or other changes to increase production incentives.
Classical Economics
A school of thought originating in the 18th century, emphasizing free markets, the idea of a self-regulating economy, and the importance of limited government intervention.
- Learn about the foundational principles of Keynesian economics and its process in confronting recessions via fiscal policy actions.
Verified Answer
JO
Jean-Bernard OrivalMay 17, 2024
Final Answer :
C
Explanation :
The Keynesian approach focuses on stimulating aggregate demand in order to boost economic growth and reduce unemployment. It involves government intervention in the economy through fiscal and monetary policies. This approach is therefore known as demand-side economics.
Learning Objectives
- Learn about the foundational principles of Keynesian economics and its process in confronting recessions via fiscal policy actions.