Explain why monetarists believe the Fed should have stimulated the economy by expanding the money supply during the Great Depression or other economic downturns.
Macroeconomic Theories
Analyzing macroeconomic theories and the Great Depression.
Explore the various macroeconomic theories and explain the differences between each one.
Explain why monetarists believe the Fed should have stimulated the economy by expanding the money supply during the Great Depression or other economic downturns.
The Keynesians challenge the Friedman–Schwartz monetarists’ monetary policy cure for the Great Depression. Use the AD-AS model to explain the Keynesian view.