According to Keynes, the Government's __________ policy should be used to stabilize the level of output and
employment.

Correct option is D

The correct answer is option (d) Fiscal.

According to John Maynard Keynes, the government's fiscal policy should be used to stabilize the level of output and employment in an economy. Fiscal policy refers to government decisions regarding public spending and taxation.

Information Booster:-

• Revenue: Revenue refers to the income generated by the government, often through taxes or other forms of income.
  
• Redistribution: Redistribution involves transferring income from certain groups (typically through taxes) to others (e.g., through welfare programs). While redistribution can affect income inequality and economic welfare, it is not the main tool Keynes suggested for stabilizing output and employment.
  
• Taxation: Taxation is a tool that can be part of fiscal policy, but on its own, it doesn't provide the full approach. Taxation can be adjusted as part of fiscal policy to influence the economy, but it is not the comprehensive answer to stabilizing output and employment without the broader context of spending policies.