Which of the following statements is correct with respect to the debate between the Keynesians and new classical economists?
A)Each side criticized monetarism
B)The key source of disagreement centered on how people form their expectations.
C)Both models believed that recessions were characterized by falling aggregate demand.
D)Both believed that unanticipated changes in monetary policy could influence output.
E)all of the above.

Question

Quizplus · Accepted Answer

The debate between Keynesians and new classical economists encompasses all the points mentioned: criticism of monetarism, the role of expectations, the nature of recessions, and the impact of monetary policy. Both schools of thought have nuanced views on these issues, leading to rich academic and policy-oriented discussions.

Which of the Following Statements Is Correct with Respect to the Debate