What is the primary action proposed by Keynesian economics to stimulate the economy during a recession?

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The primary action proposed by Keynesian economics to stimulate the economy during a recession is to increase government spending and cut taxes. This approach is grounded in the belief that during periods of economic downturn, consumer demand decreases, leading to reduced production and higher unemployment. By increasing government spending, the aim is to inject money into the economy, which can lead to job creation and increased consumer spending. This infusion of funds can help to stimulate demand for goods and services, encouraging businesses to produce more and hire additional workers.

Additionally, cutting taxes increases disposable income for individuals and businesses, which can further enhance consumer spending. When people have more money to spend, they are likely to buy more goods and services, which can help boost the economy out of recession. This combination of increased public expenditure and lower taxes is seen as a way to jumpstart economic activity and mitigate the effects of a recession.

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