Which of the following schools of economic thought would favor active intervention into the macroeconomy through fiscal policy?
A) The classical school.
B) The Keynesian school.
C) The monetarist school.
D) The new classical school.

Question

Quizplus · Accepted Answer

The Keynesian school advocates for active government intervention in the economy, especially through fiscal policy, to manage demand and address economic downturns. This contrasts with the classical and new classical schools, which generally emphasize market self-regulation, and the monetarist school, which focuses on controlling the money supply rather than fiscal measures.

Which of the Following Schools of Economic Thought Would Favor