Which of the following is a central tenet of Keynes’ ‘countercyclical economic policy’?

The central tenet of Keynes' 'countercyclical economic policy' is the idea that governments should counteract the business cycle by using fiscal and monetary measures.

In times of economic downturns, Keynes advocated for increased government spending and lower taxes to stimulate demand and pull the economy out of recession. This is known as expansionary fiscal policy.

On the other hand, in times of economic booms, Keynes suggested that governments should decrease spending and increase taxes to avoid inflation and to cool down the economy. This is known as contractionary fiscal policy.

In addition, Keynes also believed in the use of monetary policy by central banks to influence the economy. This could involve manipulating interest rates and the money supply to control inflation and stabilize the economy.

In summary, the central tenet of Keynes' 'countercyclical economic policy' is the active use of fiscal and monetary policies by governments and central banks to stabilize the economy and smooth out the business cycle.