5. A comparison of macroeconomic views For each macroeconomic viewpoint, identify whether it is a position held by classical economists, Keynesian economists, or monetarists. If the viewpoint is shared by more than one group, check all that apply. Viewpoints Classical Keynesian Monetarist Expansionary fiscal policy is either an unnecessary or ineffective response to a situation where output is below full employment. A decrease in aggregate demand will lead to only a temporary departure from full employment output. Because prices and wages are flexible, the economy will automatically adjust to full employment in the long run. ப
5. A comparison of macroeconomic views For each macroeconomic viewpoint, identify whether it is a position held by classical economists, Keynesian economists, or monetarists. If the viewpoint is shared by more than one group, check all that apply. Viewpoints Classical Keynesian Monetarist Expansionary fiscal policy is either an unnecessary or ineffective response to a situation where output is below full employment. A decrease in aggregate demand will lead to only a temporary departure from full employment output. Because prices and wages are flexible, the economy will automatically adjust to full employment in the long run. ப
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter16: The Influence Of Monetary And Fiscal Policy On Aggregate Demand
Section: Chapter Questions
Problem 8PA
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Transcribed Image Text:5. A comparison of macroeconomic views
For each macroeconomic viewpoint, identify whether it is a position held by classical economists, Keynesian economists, or monetarists. If the
viewpoint is shared by more than one group, check all that apply.
Viewpoints
Classical
Keynesian Monetarist
Expansionary fiscal policy is either an unnecessary or ineffective response to a situation where output is
below full employment.
A decrease in aggregate demand will lead to only a temporary departure from full employment output.
Because prices and wages are flexible, the economy will automatically adjust to full employment in the
long run.
ப
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