When Comparing the Keynesian Approach and the Monetarist Approach, the Only

question 56

Multiple Choice

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

• A)the Keynesian equation leads to a prediction of real GDP, while 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:

Theoretical Basis

The foundational principles and underlying ideas that form the basis for a particular field of study or theory.

Time Out

A disciplinary technique used to remove a child from an environment where inappropriate behavior has occurred, to encourage reflection and calm down.

Group Therapy

A form of psychotherapy that involves one or more therapists working with several people at the same time.

Individual Psychotherapy

A form of psychotherapy where a single client works one-on-one with a therapist to explore feelings, beliefs, or behaviors, and work through challenging or influential memories.