According to Keynesian economics, a nation's level of economic activity primarily depends on the
A) total spending of consumers, business, and government
B) stock of the economy's capital goods
C) amount of saving that is channeled into net imports
D) extent of union activity in major industries

Question

Quizplus · Accepted Answer

Keynesian economics posits that the level of economic activity in a nation is primarily determined by the aggregate demand, which includes the total spending by consumers, businesses, and the government. This approach emphasizes the role of government spending and fiscal policy in managing economic fluctuations.

According to Keynesian Economics, a Nation's Level of Economic Activity