Which of the following school 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 focus on the role of market failures and the need for government intervention to stabilize the economy. They believe that the private labor and goods market can experience persistent and inefficient equilibria, leading to macroeconomic problems such as recessions and high unemployment.

Which of the Following School of Thought Believes That the Major