Which macroeconomic model sees fiscal policy as useful and necessary?
A)Traditional classical
B)Traditional Keynesian
C)New classical
D)Monetarists

Question

Quizplus · Accepted Answer

Traditional Keynesian macroeconomic model sees fiscal policy as useful and necessary. This model believes that in times of recession, government spending should increase to boost aggregate demand and stimulate economic growth. Additionally, this model supports the use of progressive taxation to redistribute income and promote greater economic equality.

Which Macroeconomic Model Sees Fiscal Policy as Useful and Necessary