According to Keynesian economics, what is the recommended approach to address unemployment?

Show Answers

Lower the overall demand in the economyCut taxes or reduce borrowing costsReduce expenditures by the governmentReduce private sector spending and investment

Explanation

Keynesian theory suggests that to combat unemployment, government intervention should focus on increasing aggregate demand. However, decreasing private consumption and investment would reduce demand further, worsening unemployment. Therefore, reducing private spending and investment is not the Keynesian solution to unemployment.