In the simple Keynesian framework,declines in planned investment spending that produce high unemployment can be offset by raising
A)taxes.
B)government spending.
C)consumer confidence.
D)business confidence.

Question

Quizplus · Accepted Answer

According to the simple Keynesian framework, declines in planned investment spending can lead to high unemployment. To offset this, an increase in government spending can help stimulate economic activity and create jobs, leading to a reduction in unemployment. Therefore, the best choice is government spending.

In the Simple Keynesian Framework,declines in Planned Investment Spending That