The part of the Keynesian statement when an aggressive
Explanation of Solution
The main aim of monetary policy is to control the supply of money in an economy to achieve the targeted
Therefore, according to the given statement when Keynes supported the fiscal policy as a tool to lessen the impact of business cycle variations, then here, using fiscal policy in the form of tax cuts to stimulate economic activity is part of the Keynesian statement.
And, in addition to praising aggressive monetary policy, the endorsement of strong monetary policy would not be part of the Keynesian statement because Keynes was concerned that a liquidity trap would limit the ability of monetary policy to affect interest rates.
Introduction: Price level is the average current price of goods and services in the economy that are produced in a particular interval.
According to Keynesians, the prices are can rigid as there are changes in any aspect of spending, whether government, investment, or consumer spending, they affect the output to change.
Chapter 35 Solutions
Krugman's Economics For The Ap® Course
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