Question

Classical economists emphasize _____, while monetarist economists focus on ____. Multiple Choice volatility in investment spending; waiting for the market to self-correct volatility in investment spending; monetary policy Both focus on emphasizing the importance of technological innovation Technological innovation; monetary policy

Answer 1

Answer:

Volatility in investment spending, monetary policy

Explanation:

Classical economists believe that the economy is always capable of attaining the natural level of real GDP or output, which is the level of real GDP that is obtained when the resources found in the economy are fully employed.

A monetarist is an economist who holds a firm belief that the money supply, which includes physical currency, deposits and credit, is the primary factor affecting demand in an economy. Consequently, the performance of the economy, its growth, can be regulated by changes in the money supply.