Economics · Macroeconomics

According to Keynesian theory, during a recession, what should the government ideally do?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Reduce spending
2Promote imports
3Increase spending and cut taxes✓
4Increase interest rates

Correct answer

Increase spending and cut taxes

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According to Keynesian theory, during a recession, what should the government ideally do?

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