C. Economic output is influenced by demand and spending on the economy
Keynesian economics is a macroeconomic theory that emphasizes the role of government intervention in the economy. According to this theory, government spending and monetary policy can be used to stabilize the economy and promote full employment. The theory argues that in times of economic downturn, private demand and spending may be insufficient to drive economic growth, and that government intervention is necessary to boost demand and stimulate economic activity. Therefore, the main idea of keynesian economics is that the government can and should use fiscal policy tools such as changing taxes and spending to stabilize the economy.
Uday Tahlan