Which of the following groups would advocate raising taxes to address inflation?
A) Monetarists.
B) Classical economists.
C) Keynesians.
D) Supply-side economists.

Question

Quizplus · Accepted Answer

Keynesians argue that in times of inflation, raising taxes can slow down consumption and, therefore, reduce demand-pull inflation. They also propose increasing government spending to stimulate aggregate demand and reduce unemployment. Monetarists generally advocate using monetary policy, such as reducing the money supply, to address inflation. Classical economists and supply-side economists typically believe in a laissez-faire approach to the economy and would not advocate for raising taxes to address inflation.

Which of the Following Groups Would Advocate Raising Taxes to Address