Keynesians and monetarists believe that economic fluctuations are caused

Question

Quizplus · Accepted Answer

Both Keynesians and monetarists believe that shifts in the AD curve are the primary cause of economic fluctuations. Keynesians argue that government intervention in the form of fiscal policy can be used to stabilize the economy, while monetarists believe that changes in the money supply influence AD and should be managed by the central bank. Both schools of thought recognize the importance of shifts in the AS curve as well, but they do not consider it the main driver of economic fluctuations. Changes in the structural deficit are a political issue rather than an economic cause of fluctuations.

Keynesians and Monetarists Believe That Economic Fluctuations Are Caused