When Comparing the Keynesian and Monetarist Approaches, the Only Substantive

question 19

Multiple Choice

When comparing the Keynesian and monetarist approaches, the only substantive difference is that

• A)the Keynesian equation leads to a prediction of real GDP; the monetarist equation leads to a prediction of nominal GDP.
• B)Keynesians concentrate on aggregate demand and monetarists concentrate on aggregate supply.
• C)Keynesians approach aggregate demand by multiplying the money supply by velocity, while monetarists use the equilibrium conditions of the expenditure schedule.
• D)Keynesian analysis suggests that money affects consumption first while monetarist analysis suggests that money affects investment spending first.

---

Definitions:

Atomic Sentences

Sentences that express a basic fact or idea without combining or including any logical operations or propositions.

Hypothetical Syllogism (HS)

A logical argument formed by two conditional statements and a conclusion that follows from chaining the conditionals together.

Modus Ponens (MP)

A logical argument form that asserts if "P implies Q" and "P is true," then "Q must also be true."

Modus Tollens (MT)

A logical argument form where the denial of the consequent leads to the denial of the antecedent, often structured as "If P, then Q. Not Q, therefore not P."