A ________ macroeconomist believes that the economy is self-regulating and always at full employment. A ________ macroeconomist believes the economy requires active help from fiscal policy and monetary policy to maintain full employment.
A)Keynesian; new Keynesian
B)classical; monetarist
C)classical; Keynesian
D)new classical; monetarist
E)monetarist; classical

Question

Quizplus · Accepted Answer

Classical macroeconomists believe in the self-regulating nature of the economy and the ability of market forces to maintain full employment. Keynesian macroeconomists, on the other hand, believe that the government needs to actively intervene through fiscal and monetary policy to achieve full employment. The other answer choices pair different schools of thought, which do not match the description given.

A ________ Macroeconomist Believes That the Economy Is Self-Regulating and Always