Which of the following statements correctly describes the policy stance of a macroeconomist?
A) A monetarist believes that the quantity of money should be constantly changed in order to offset changes in aggregate demand.
B) A Keynesian would believes that if taxes are always kept low and the quantity of money is kept on a steady growth path, no policy actions will be needed to maintain full employment.
C) A new classical macroeconomist believes that fiscal and monetary policy are required to maintain full employment.
D) A classical macroeconomist believes that maintaining consistently low taxes will allow the economy to expand at an appropriate and rapid pace.

Question

Quizplus · Accepted Answer

Classical macroeconomists generally believe in minimal government intervention, including low taxes, to allow the economy to self-regulate and grow efficiently.

Which of the Following Statements Correctly Describes the Policy Stance