Keynesian macroeconomists recommend
A)an increase in the quantity of money to offset decreases in aggregate demand and a decrease in the quantity of money to offset increases in aggregate demand.
B)policies that actively offset changes in long-run aggregate supply that result in negative economic growth.
C)policies that minimize the disincentive effects of taxes on employment, investment, and technological change.
D)policies that actively offset changes in aggregate demand that bring recession.
E)none of the above

Question

Quizplus · Accepted Answer

Keynesian macroeconomists recommend policies that actively offset changes in aggregate demand that bring recession. This could include government spending programs or monetary policies, such as lowering interest rates or increasing the money supply. They believe that government intervention is necessary to stabilize the economy during times of economic fluctuation.

Keynesian Macroeconomists Recommend