Christina believes that shifts in aggregate demand cause a change in both real output and the price level. She believes that an economic recession will not necessarily self-correct in the long run, and therefore she believes that active fiscal and monetary policy is justified to smooth out the business cycle. Christina is best described as a:
A)classical economist.
B)Keynesian.
C)supply-sider.
D)monetarist.

Question

Quizplus · Accepted Answer

Christina's belief in the effectiveness of fiscal and monetary policy to smooth out the business cycle aligns with Keynesian economic theory, which emphasizes the role of government intervention. Her belief that shifts in aggregate demand affect both output and price levels also aligns with Keynesian theory, which emphasizes the importance of consumer and business spending in driving economic growth.

Christina Believes That Shifts in Aggregate Demand Cause a Change