1. Keynes belief was that the government should implement _____ fiscal policy to get the economy out of a recessionary gap. 2. Keynes belief was that the government should implement ____ fiscal policy to get the economy out of an inflationary gap.
Added by Laura H.
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Keynes believed that during a recessionary gap, the government should increase its spending and/or decrease taxes to stimulate demand. This is known as **expansionary fiscal policy**. Show more…
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