The answer is true.
Keynesian contend that because prices are fairly rigid, changes in any aspect of spending including government, consumer, or investment spending can produce changes in output.
For instance, the output will grow if government expenditure rises while all other spending factors stay the same.
The so-called multiplier effect, which is when output grows by a multiple of the initial shift in spending that created it, is also included in Keynesian models of economic activity.
Therefore, a ten billion dollar increase in government spending might result in a fifteen billion dollar increase in total production (a multiplier of 1.5) or a five billion dollar increase (a multiplier of 0.5).
Hence, from a Keynesian perspective, the way out of a recession includes an increase in government spending, a tax cut, or an increase in transfer payments.
Learn more about Keynesian:
https://brainly.com/question/17292188
#SPJ4
