The Case in Point titled "Tough Medicine" stated that the Keynesian prescription for an inflationary gap was to

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According to the Keynesian theory, an inflationary gap occurs when aggregate demand exceeds potential output, leading to rising prices and an overheating economy. To counter this, Keynesian economists recommend applying contractionary fiscal or monetary policy, or both. Contractionary fiscal policy involves decreasing government spending or increasing taxes, while contractionary monetary policy involves increasing interest rates or decreasing the money supply. These policies are intended to reduce aggregate demand and cool down the economy, bringing it closer to potential output and reducing inflationary pressures.

The Case in Point Titled "Tough Medicine" Stated That the Keynesian