Which economic theory primarily focuses on the role of government intervention in the economy to achieve stability and growth?

The economic theory that mainly focuses on the role of government intervention to promote stability and growth is called Keynesian economics. This theory, developed by John Maynard Keynes during the Great Depression, argues that active government involvement is necessary to manage economic fluctuations. For example, during a recession, Keynesians believe that the government should increase spending and cut taxes to stimulate demand, which can help boost the economy. The idea is that when people have more money to spend, businesses will thrive, leading to job creation and overall economic recovery. In summary, Keynesian economics emphasizes that government actions can help stabilize the economy and encourage growth during tough times.