Economics (AS & A Level) · Oct / Nov 2022 · Paper 33 · Question 25

Keynesian and Monetarist economists believe different things about the way the economy works. Which combination is correct?

1. AKeynesian: decreasing AD will always lead to an increase in economic growth; Monetarist: economic growth is achieved using fiscal policy
2. BKeynesian: increasing AD brings the economy out of recession; Monetarist: the economy always tends to full employment in the long run
3. CKeynesian: increasing AD will always lead to increased employment; Monetarist: economic growth is achieved by cutting taxation
4. DKeynesian: increasing AS brings the economy out of recession; Monetarist: full employment will always be achieved in the long run

As printed in the paper