Keynesian analysis stresses that a tax cut that increases the government's budget deficit or reduces its budget surplus would: will stimulate aggregate demand and, thereby, promote employment.
This is used to refer to the economics analysis of Maynard Keynes. He was a foremost economist that lived.
Keynes have the opinion that when the spending of a government is more than the money it generates, the large deficit would help raise aggregate demand.
This would raise government spending and the raise economic activities and decrease unemployment.
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