Keynesian economics is often associated with which of the following policies during economic downturns?

Keynesian economics, developed by John Maynard Keynes during the Great Depression, emphasizes the importance of total spending in the economy and its effects on output and inflation. During economic downturns, Keynesian theory advocates for increased government spending as a means to stimulate economic activity.

The rationale behind government spending is that it can create jobs, increase demand for goods and services, and ultimately lead to economic recovery. By using fiscal policy—particularly government expenditure—during times of recession, economists aligned with Keynesian thought argue that the government can compensate for reduced private sector spending, which often contracts during economic slumps. This approach aims to boost aggregate demand and foster an environment conducive to recovery.

While tax cuts, currency devaluation, and import tariffs can have various effects on the economy, they do not directly align with the central tenet of Keynesian economics regarding the mechanism of addressing economic slowdowns through government intervention in the form of spending.