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By the end of 2018, a recession is coming to end. At the beginning of the recession, Congress decreased taxes to soften the recession but caused budget deficits. Now that the recession is ending, what are the different fiscal policy changes Congress should make according to Keynesian economics

User Anataliocs
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Answer and Explanation:

In order to answer the question, we first need to understand the concept of Keynesian theory of great depression. John Maynard Keynes, says that during recession or depressed economic conditions, governments should increase their spending in order to create a correct balance of demand and avoid high unemployment. Once the recession and market forces are stable, by that time the full employment is reached and now the deficit could be repaid. Congress could bring the taxes back to its original state as the people are now back to stable condition. This would help to meet the deficit requirement.

User Lfkwtz
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