Which of the following is a mechanism Keynes advocated for dealing with a situation of depressed output?
A) Laissez-faire
B) Raising taxes
C) Increasing government expenditure
D) Increasing supply incentives

Question

Quizplus · Accepted Answer

Keynes advocated for increasing government expenditure as a mechanism to deal with a situation of depressed output. He believed that during times of economic downturns, the government should increase its spending to stimulate demand and boost economic activity. This approach is known as fiscal stimulus and is based on the idea that government spending can create jobs and increase consumer spending, which in turn will lead to economic growth. Laissez-faire, raising taxes, and increasing supply incentives are not mechanisms Keynes advocated for in dealing with a situation of depressed output.

Which of the Following Is a Mechanism Keynes Advocated for Dealing