Government class: Explain the differences between Keynesian and
Monetarist (typically associated with Milton Friedman) economics.
What...
Government class: Explain the differences between Keynesian and
Monetarist (typically associated with Milton Friedman) economics.
What do proponents of each side argue, and where have we seen these
ideas implemented?
The differences between Classical, Keynesian, Monetarist, and
how each of the school of thought stands for with regard to
economic policies; Their differences in their view with regards to:
wages and prices, AS curve, Monetary policy or Fiscal policy.
Question 2 – Social Responsibility of Business The Nobel prize
winning “monetarist” economist Milton Friedman made a famous but
very controversial assertion that “the social responsibility of
business is to increase its profits”. Corporate social
responsibility has become a hot topic of discussion, and an
independent research group has claimed that at least 54% of
Canadians agree with the Friedman assertion. You take a random
sample of 125 people and find only 57 agreeing with the Friedman
assertion.
a) Test...
What would you say are the key differences between classical-type economics and Keynesian-style economics? Which theory (Keynesian or Classical) would you think would be most useful in a major recession? Explain.
As a monetarist, Milton Freidman suggested that the government
should only release the amount of money into the economy that
matches the GDP production. Discuss how the entire demand curve for
money will adjust to the equilibrium point. Would you agree with
Milton Freidman’s opinion on the ability of monetary policy to
address economic problems? Explain your rationale.
What are the differences and similarities among the New
Keynesian, Monetarist and Neo-Classical models in terms of
their predicted outcomes? How do the different assumptions of the
models result in policy debates among their respective
adherents?