Get comprehensive solutions to your questions with the help of IDNLearn.com's experts. Get prompt and accurate answers to your questions from our experts who are always ready to help.

according to the keynesian model, which of the following policies would be most appropriate during a period of rapid inflation?

Sagot :

Keynes believed that during a time of rapid inflation, the government should raise taxes and cut spending.

Stabilizing the economy Keynesian economists, for instance, advocate deficit spending on infrastructure projects that require a lot of labor in order to boost employment and maintain wage stability during economic downturns. When there is a lot of growth on the demand side, they would raise taxes to cool the economy and keep inflation at bay.

What is the Keynesian cure for inflation and recession?

Keynesian macroeconomics argues that expansionary fiscal policy, such as tax cuts to encourage consumption and investment or direct increases in government spending to shift the aggregate demand curve to the right, is the answer to a recession. This policy is meant to combat unemployment and inflation.

To learn more about Keynesian economists here

https://brainly.com/question/27961496

#SPJ4