Which of the following schools of thought believes that the major source of the macroeconomic problems are the disequilibria in the private labor and goods market?
A) Keynesians and new Keynesians
B) Only monetarists
C) Only new classical economists
D) Monetarists and new classical economists
E) Monetarists and Keynesians

Question

Quizplus · Accepted Answer

Keynesians and new Keynesians believe that macroeconomic problems arise from disequilibria in the private labor and goods market, as they argue that the market can remain stuck in a state of insufficient demand, leading to unemployment and other economic issues. Monetarists and new classical economists emphasize the role of money supply and monetary policies, and only new classical economists focus on the importance of rational expectations and market efficiency in explaining macroeconomic problems.

Which of the Following Schools of Thought Believes That the Major