Both Keynesian and monetarist theories emphasize the potential of aggregate demand shifts to alter macro outcomes.

Question

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Both Keynesian and monetarist theories recognize the importance of aggregate demand in shaping macroeconomic outcomes. Keynesians argue that government intervention and fiscal policy can stimulate demand and lift the economy out of a recession, while monetarists believe that controlling the money supply is the key to stabilizing the economy and preventing inflation.

Both Keynesian and Monetarist Theories Emphasize the Potential of Aggregate