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Contrast Keynesian & Monetarist Views on Inflation

Describe the contrasting views of the Keynesians and the monetarists with regard to an appropriate contractionary policy to bring an economy out of a period of inflation caused by excess aggregate demand.

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A Keynesian would argue that the government should reduce its spending to decrease aggregate demand. A monetarist would ...

Solution Summary

This solution contrasts Keynesians' & Monetarists' views on how to deal with inflation due to excess Aggregate Demand in an economy.