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From 2007 to 2009, the US experienced one of its worst economic collapses. What would Keynes...

From 2007 to 2009, the US experienced one of its worst economic collapses. What would Keynes recommend the US government should do to fight this problem (if anything)? What would Neoclassical economists recommend the US government should do to fight this problem (if anything)?

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Keynes believed in active government role to fight the recession in the market, they would suggest increasing the government purchases and decreasing the taxes in the market that would take the economy out of the recession in the market because the government purchases is part of the Aggregate demand and reducing taxes will increase the demand.

The neo classical didn't believed in any role for the government, according to them the economy will adjust quickly and take away the recession out by settling at a lower price. People are smart enough to adjust to the recession quickly and the government should not intervene in the market.

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