Conservatives usually favor increasing government spending to increase aggregate demand

Business Dec 28, 2020

Conservatives usually favor increasing government spending to increase aggregate demand. True or false?

Expert Solution

The given statement is false.

Conservatives refer to a group of people with a similar thought based on the free market and private ownership, and these are the people who hold traditional religion with conservative beliefs. According to the Conservatives, there should be a low intervention of government through economic policies or regulations. Therefore, conservatives favor invisible hands to stabilize the economy instead of government spending to affect aggregate demand.

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