Which of the following believe that during a recession the appropriate policy is an increase in government spending,which sets off a multiplier reaction?
A) Keynesians.
B) New classical economists.
C) Monetarists.
D) Supply-siders.

Question

Quizplus · Accepted Answer

Keynesians believe in the use of fiscal policy, specifically an increase in government spending, to stimulate aggregate demand during a recession. They argue that this increase in spending will lead to a multiplier effect, where one person's spending becomes another's income, leading to further spending and economic growth.

Which of the Following Believe That During a Recession the Appropriate