Question

For each macroeconomic viewpoint, identify whether it is a position held by classical economists, Keynesian economists, or monetarists. If the viewpoint is shared by more than one group, check all that apply.
Viewpoints Classical Keynesian Monetarist
During a recession, the government should increase spending or
reduce taxes in order to increase aggregate demand through the
spending multiplier.
The primary cause of high inflation rates is excessively high
growth of the money supply.

Answer 1

Answer:

The correct answers are the following:

During a recession, the government should increase spending or reduce taxes in order to increase aggregate demand through the spending multiplier: Keynesian viewpoint

The primary cause of high inflation rates is excessively high groth of the money supply: Classical and Monetarist viewpoint.

Explanation:

On the one hand, the keynesian economists are the ones that support the intervention of the government in the economy and therefore that they primarily believe that in order to incentive the economy the government should increase spending or at least reduce taxes with the purpose of stimulate the demand of the population so that the production increases

On the other hand, the classical and monetarist economists are the ones that support the fact that the government should not be part of any type of decision when it comes to the economy of the country and therefore that they support the idea that when the government decides to increase the money supply then the inflation rates automatically jumps to higher levels