In contrast with classical economics, Keynesian economics _____.

Question

more strongly emphasizes the importance of individual businesses to the overall health of the economy

takes a broader view of the economy

relies more heavily on the laws of supply and demand

reduces the role of government

Answer 1

In contrast with classical economics, Keynesian economics takes a broader view of the economy.

Keynesian economics emphasizes the role of aggregate demand in influencing economic output and employment, advocating for active government intervention to manage economic fluctuations, particularly during periods of recession. While classical economics tends to focus on the self-regulating nature of markets and the importance of individual businesses, Keynesian economics addresses the economy as a whole and highlights how various sectors interact.