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Economic Policy: Influential Theories

Question 8 • * HSA 26-27 Economics

Keynes believed that aggregate demand could help solve economic problems during a recession.

Answer
A
decreasing
B
increasing

Explanation

Keynes argued that a recession can be eased when aggregate demand rises. Greater spending encourages businesses to produce more and hire more workers, helping the economy recover. So the correct choice is increasing.

AI-written and checked against the verified answer.

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