In 2008, Germany passed a stimulus package of $29 billion as its economy slowed. This policy action follows the ________ to restore full employment.
A) Keynesian viewpoint that supports increases in federal government expenditure
B) Keynesian viewpoint that supports increases in the money supply
C) monetarist viewpoint that supports increases in expenditure by the federal government
D) new classical viewpoint that discourages the use of expenditure by the federal government

Question

Quizplus · Accepted Answer

The Keynesian economic theory advocates for increased government spending and lower taxes to stimulate demand and pull the global economy out of depression. Therefore, Germany's action of passing a stimulus package aligns with the Keynesian viewpoint that supports increases in federal government expenditure to restore full employment.

In 2008, Germany Passed a Stimulus Package of $29 Billion