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Brief description: Keynesians recommend active intervention in the economy to manage the level of demand. Reflationary policies increase the level of aggregate demand.

Detailed description: Because Keynesians believe that the economy can settle at an equilibrium at any level of output, they recommend the use of active intervention to manage demand. If demand is too low they would recommend reflationary policies to shift aggregate demand to the right as in this diagram. Reflationary policies could include increasing government expenditure, reducing tax rates or reducing interest rates.