Question

Keynes believed that economies experiencing high unemployment should adopt policies to

a. reduce government expenditures.
b. reduce the money supply.
c. increase aggregate demand.
d. increase aggregate supply.

Answer 1

C. Increase aggregate demand.

Step-by-step explanation:

John Maynard Keynes theory of economy told that a Government should spend money on the economy of the country to increase the demand which will increase the employment and growth of the country's economy. Also he told that the government should reduce the taxes in the conditions of weak economy of the country.