Respuesta :
A neoclassical economist and a Keynesian economist would disagree most strongly about The benefits of deficit spending.
The term "deficit spending" frequently conjures up a Keynesian theory of economic stimulus, in which the state incurs debt while leveraging its purchasing power to boost demand and the economy.
- The liberal British economist John Maynard Keynes is widely credited with the idea of deficit spending as an economic boost. Keynes contended that a drop in consumer spending during a recession or depression might be offset by an increase in government spending in his 1936 book The General Theory of Employment, Interest, and Employment.
- According to Keynes, maintaining aggregate demand—the total amount spent by consumers, firms, and the government—was essential to preventing protracted periods of high unemployment that can exacerbate a recession or depression by causing businesses to fire additional employees, and so on.
- Keynes asserted that the government's accumulated debt might be paid off if the economy is expanding once more and full employment has been attained. Keynes claimed that the government could simply raise taxes and remove extra capital from the system if increased government spending resulted in excessive inflation.
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