The Keynesian approach to policy focuses on using policy tools to manipulate _____ to create full employment in the economy.
A) long-run aggregate supply
B) short-run aggregate supply
C) aggregate demand
D) velocity

Question

Quizplus · Accepted Answer

The Keynesian approach emphasizes manipulating aggregate demand through fiscal and monetary policies to achieve full employment, rather than focusing on supply-side factors or the velocity of money.

The Keynesian Approach to Policy Focuses on Using Policy Tools