The Major Limitation of Both the Keynesian Approach and the Monetarist

question 196

Multiple Choice

The major limitation of both the Keynesian approach and the monetarist approach is that both

• A)focus on the determination of interest rates to the exclusion of price levels.
• B)study the determination of real GDP equilibrium without including the price level.
• C)are ways of studying the aggregate demand curve, but to learn anything about the price level and output, the aggregate supply curve must be included in the analysis.
• D)concentrate on interest rates without considering changes in consumption or net exports.

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Definitions:

Rubeola

Also known as measles, a highly contagious viral infection characterized by fever, cough, and a distinctive rash.

Rubella

A contagious viral infection best known by its distinctive red rash, also known as German measles, and is of particular concern during pregnancy due to the risk of congenital rubella syndrome.

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