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Keynesian Economists Argue That During a Recession

Question 38

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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.

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