In the 1960s, there was significant debate between Keynesians and monetarists. Explain several aspects of this debate
What will be an ideal response?
There were three key areas of this debate: (1 ) the relative importance of monetary and fiscal policy; (2 ) the perceived stability of the Phillips curve; and (3 ) the role of policy to stabilize the economy.
You might also like to view...
An increase in the price of digital cameras will result in a(n):
A. Shift of the demand curve for digital cameras to the left B. Decrease in the demand for digital cameras C. Shift of the demand curve for digital cameras to the right D. Movement up and to the left along the demand curve for digital cameras
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. expansionary; higher; higher C. recessionary; higher; potential D. recessionary; lower; lower