Asked by Giovanni Magana on May 18, 2024
Verified
Keynesian economists (as opposed to monetarist economists) argue that
A) the economy will quickly return to equilibrium via natural forces.
B) the government should use macro policy to keep the economy from getting too far from full employment equilibrium.
C) monetary policy should be used according to strict rules.
D) Keynesian economists argue all of these statements.
Keynesian Economists
Economists who believe that demand-side factors are critical in determining the level of economic activity, advocating for government intervention to manage demand.
Macroeconomic Policy
Strategies and actions taken by a government or central bank to regulate and control the economy as a whole, including fiscal and monetary policies.
Full Employment
When a society’s resources are all being used with maximum efficiency.
- Understand the distinctions between Keynesian and monetarist perspectives regarding economic equilibrium and policy measures.
Verified Answer
Learning Objectives
- Understand the distinctions between Keynesian and monetarist perspectives regarding economic equilibrium and policy measures.
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