Which school of thought believes that recessions are the result of inappropriate monetary policy?
A) only classical
B) Monetarist
C) only Keynesian
D) both Keynesian and classical

Question

Quizplus · Accepted Answer

The Monetarist school of thought believes that recessions are the result of inappropriate monetary policy, specifically changes in the money supply. Classical economists generally believe that markets are self-correcting and government intervention is not necessary. Keynesian economists believe that recessions are the result of a lack of aggregate demand and advocate for government spending to stimulate the economy.

Which School of Thought Believes That Recessions Are the Result