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.© BrainMass Inc. brainmass.com October 16, 2018, 4:37 pm ad1c9bdddf
A Keynesian would argue that the government should reduce its spending to decrease aggregate demand. A monetarist would ...
This solution contrasts Keynesians' & Monetarists' views on how to deal with inflation due to excess Aggregate Demand in an economy.
Monetarists and Keynesian
1. Contrast the Keynesian and Monetarist views on how a change in the money supply impacts the economy?explain
2.Discuss the determinants of the equilibrium interest rate and how it may change.explain
3.Contrast the Keynesian and Monetarist views on the effectiveness of fiscal policy? explain