In the first half of 2008, food and energy costs in the United States increased. At the same time, the financial crisis slowed production as firms predicted lower profits. A ________ macroeconomist would support the use of ________.
A) classical; taxes to push the economy back to full employment
B) Keynesian; fiscal or monetary policy to stimulate aggregate demand
C) classical; monetary policy to stimulate aggregate demand
D) Keynesian; technology to push the economy back to full employment

Question

Quizplus · Accepted Answer

Keynesian economists advocate for the use of fiscal or monetary policy to manage economic fluctuations and stimulate aggregate demand, especially during periods of slow production and economic downturns.

In the First Half of 2008, Food and Energy Costs