An economist is most likely to favor discretionary aggregate demand policies,rather than a policy rule,if he or she is in which economic tradition?

Question

Quizplus · Accepted Answer

Keynesian economists tend to believe in the efficacy of discretionary, government-led efforts to manage aggregate demand in order to stabilize the macroeconomy. This is in contrast to classical and monetarist economists who tend to favor more rule-based, market-oriented approaches. Supply-side and libertarian economists generally prioritize policies that focus on growth, rather than stabilization.

An Economist Is Most Likely to Favor Discretionary Aggregate Demand