The monetarist-Keynesian debate on the importance of monetary policy is unresolved because monetarists and Keynesians focus on two different types of evidence that generate conflicting conclusions. Monetarists tend to focus on
A) structural-model evidence, while Keynesians focus on reduced-form evidence.
B) reduced-form evidence, while Keynesians focus on structural-model evidence.
C) reduced-form evidence, while Keynesians focus on direct-model evidence.
D) structural-model evidence, while Keynesians focus on direct-model evidence.
B
You might also like to view...
Refer to the above figure. If the relevant aggregate demand curve was AD2, the government could do all of the following to close the existing gap EXCEPT
A) increase government spending on roads. B) reduce marginal tax rates. C) reduce corporate taxes. D) reduce defense spending.
A nation has a population of 260 million people. Of these, 60 million are retired, in the military, in institutions, or under 16 years old. There are 188 million who are employed and 12 million who are unemployed. What is the unemployment rate?
A. 27 percent B. 4 percent C. 9 percent D. 6 percent