_____ macroeconomists focused on the _____ effects of _____ policy on the aggregate price level, ignoring any _____ effects on aggregate output.
A) Keynesian; long-run; monetary; short-run
B) Classical; short-run; monetary; long-run
C) Classical; long-run; monetary; short-run
D) Keynesian; long-run; fiscal; short-run

Question

Quizplus · Accepted Answer

Classical macroeconomists focused on the long-run effects of monetary policy on the aggregate price level, ignoring any short-run effects on aggregate output. They believed that in the long run, changes in the money supply would only affect prices and not output. Keynesian economists, on the other hand, focused on the short-run effects of fiscal policy on aggregate output, ignoring any long-run effects on the price level.

_____ Macroeconomists Focused on the _____ Effects of _____ Policy

___ Macroeconomists Focused on the _ Effects of ___ Policy