The school of thought that pays particular attention to the effects on the macroeconomy of decision making in the microeconomy is the:
A) Keynesian school.
B) monetarist school.
C) new classical school.
D) new Keynesian school.

Question

Quizplus · Accepted Answer

The new Keynesian school focuses on how imperfections in the market can justify government intervention at the macroeconomic level, based on microeconomic principles. This approach combines elements of Keynesian economics, which emphasizes the role of demand in the economy, with modern microeconomic foundations to explain macroeconomic phenomena.

The School of Thought That Pays Particular Attention to the Effects