Keynesian theory tells us that there are three approaches government can take to move an economy out of recession : – Reduce interest rates – Reduce taxes -Increase government spending However, in...

Keynesian theory tells us that there are three approaches government can take to move an economy out of recession :

– Reduce interest rates

– Reduce taxes

-Increase government spending

However, in practice these approaches may not work For each approach, discuss:

1-How is it supposed to work ( ie, its strengths as a policy tool)

2-why it might not work (ie,its weaknesses as a policy tool)