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Answer to Question #221245 in Macroeconomics for Sylvia
Question #221245
Why did Keynes believe that the government should control the level of aggregate demand in the economy
Expert's answer
The government should control the aggregate demand level in the economy to match the potential output.
This can be achieved through raising spending in times of recessions and reducingspending during booms.
Learn more about our help with Assignments: Macroeconomics
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