Which of the following statements is (are)correct? There is agreement between the Keynesians and monetarists that
A)an increase in aggregate demand will increase both output and price in the short run.
B)there is a trade-off between inflation and unemployment in the short run.
C)in the long run,when the expected price level also has time to adjust,output will not be affected by changes in aggregate demand.
D)All of the above
E)None of the above

Question

Quizplus · Accepted Answer

A) Keynesians and monetarists agree that an increase in aggregate demand will increase both output and price in the short run.
B) Keynesians and monetarists agree on the existence of a short-run trade-off between inflation and unemployment, known as the Phillips Curve.
C) In the long run, both Keynesians and monetarists agree that changes in aggregate demand will not affect output as expected price levels adjust over time.

Which of the Following Statements Is (Are)correct? There Is Agreement