The degree to which monetary forces are the cause of aggregate demand instability is the major controversy between
A)classicists and Keynesians.
B)monetarists and new classical economists.
C)real business cycle theorists and classicists.
D)monetarists and Keynesians.
E)None of the above

Question

Quizplus · Accepted Answer

The controversy between monetarists and Keynesians revolves around the degree to which monetary forces affect aggregate demand. Monetarists argue that changes in the money supply primarily determine aggregate demand, while Keynesians argue that there are other factors, such as government spending and investment, that also play important roles. The other answer choices do not accurately reflect the main controversy between economic theories.

The Degree to Which Monetary Forces Are the Cause of Aggregate