Which of the following groups believes monetary policy to be effective for fighting inflation but not for changing real output?
A)Keynesian economists.
B)Classical economists.
C)Monetarists.
D)Neo-Keynesian economists.

Question

Quizplus · Accepted Answer

Monetarists argue that monetary policy can effectively control inflation, but it is not effective in changing real output as the long-run level of output is determined by the supply side of the economy. Keynesian and Neo-Keynesian economists advocate for active fiscal policies to change real output, while classical economists believe that markets are self-correcting and government intervention is not necessary.

Which of the Following Groups Believes Monetary Policy to Be