Question 7 (1 point) d John is a Classical economist. He argues that in a downtu

Question

Question 7 (1 point) d John is a Classical economist. He argues that in a downturn the government should step back and allow the economy to self-correct. Pedro is a Keynesian economist and argues that John is correct- the government should leave it alone the government should pursue contractionary fiscal policy in order to encourage economic growth. the government should pursue expansionary fiscal policy in order to encourage economic growth. the government should decrease spending, especially reducing all forms of unemployment benefits Save Question 8 (1 point) C

Explanation / Answer

Keynesian economists advocate the government intervention in the economy.

During recession, Keynesian economists advocate administration of expansionary fiscal policy.

So,

Pedro is a keynesian economist and argues that the government should pursue expansionary fiscal policy in order to encourage economic growth.

hence, the correct answer is the option (3).

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