Both Keynesian and monetarist theories believe that _______ aggregate _______ causes inflation.
A) An increase in;supply
B) Excessive;supply
C) Too little;demand
D) Excessive;demand

Question

Quizplus · Accepted Answer

Both Keynesian and monetarist theories argue that excessive aggregate demand, meaning there is more demand for goods and services than the economy can supply, leads to inflation. This excess demand puts upward pressure on prices, leading to inflation.

Both Keynesian and Monetarist Theories Believe That _______ Aggregate _______

Both Keynesian and Monetarist Theories Believe That _ Aggregate _