Country Z is passing through a recession.Which group of economists is likely to believe that a shift of the aggregate demand curve has caused the recession?

Question

Quizplus · Accepted Answer

Keynesians believe that shifts in aggregate demand can cause economic fluctuations, including recessions. They advocate for government intervention, such as increased spending or tax cuts, to stimulate demand and lift the economy out of recession. Monetarists, on the other hand, focus on the role of monetary policy in stabilizing the economy, while real business cycle theorists and neoclassicists emphasize the role of supply-side factors and market efficiency in determining economic outcomes.

Country Z Is Passing Through a Recession