Which of the following statements is correct?
A)In both the Keynesian and classical systems,aggregate demand is an important determinant of output and employment
B)In classical and monetarist models,money is the primary factor determining changes in aggregate demand.
C)Aggregate demand in the Keynesian model is determined entirely by the quantity of money,whereas in the classical model,money is one of several factors determining aggregate demand
D)None of the above

Question

Quizplus · Accepted Answer

In classical and monetarist models, money supply is considered a primary factor influencing aggregate demand, whereas Keynesian models emphasize other factors like government spending and investment.

Which of the Following Statements Is Correct