Modern Keynesians differ from traditional Keynesians because modern Keynesians
A)Believe that monetary policy can be useful in managing the economy.
B)Favor fixed rules and steady,predictable policies.
C)Believe that failures of the economy are inherent in a capitalist economy.
D)Believe that tax cuts and government spending should be used to increase aggregate demand and output.

Question

Quizplus · Accepted Answer

Modern Keynesians differ from traditional Keynesians primarily in their belief that monetary policy can be an effective tool for managing the economy, alongside fiscal policy. Traditional Keynesians tend to emphasize fiscal policy more heavily.

Modern Keynesians Differ from Traditional Keynesians Because Modern Keynesians