Multiple Choice
Keynesian economists argue that during a recession
A) private sector spending will rise and therefore government spending should be reduced in order to help maintain aggregate demand at or near the full employment level.
B) private sector spending will decline, and therefore government spending should increase in order to help maintain a high level of aggregate demand.
C) private sector spending will decline, and therefore government spending should be reduced in order to avoid the crowding out of still more private sector spending.
D) private sector spending will rise and therefore government spending should be increased in order to provide more stimulus for the economy.
Correct Answer:

Verified
Correct Answer:
Verified
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