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AP US Government
Unit 4 – American Political Ideologies and Beliefs
Topic 4.9
What distinguishes Keynesian economic policy from supply-side economics in terms of government involvement?
Keynesian policy advocates for increased government spending and lower taxes to stimulate demand, while supply-side economics supports reducing regulations and taxes to encourage production.
Both are entirely focused on controlling inflation rather than stimulating growth or job creation.
Both follow the same principle of increasing government spending during recession periods.
Keynesian policy supports reducing taxes and regulations to spur production, while supply-side economics promotes increased government spending to stimulate demand.
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AP US Government - 4.9 Ideology and Economic Policy
Key terms
Supply-side Economics
Government involvement
Keynesian economic policy
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Cram Mode
AP Score Calculators
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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