Question

Which best describes a difference between the views of Milton Friedman and John Maynard Keynes on the economy? Friedman said that monetary policy should be used to influence aggregate demand, while Keynes believed the best approach was fiscal policy. Friedman said that fiscal policy should be used to influence aggregate demand, while Keynes believed the best approach was monetary policy. Keynes believed in little government intervention in the economy, while Friedman said government should play an active role. Keynes believed the economy was too complicated to think of aggregates, while Friedman said higher aggregate demand could solve issues.

Answer 1

The answer is A. Friedman said that monetary policy should be used to influence aggregate demand, while Keynes believed the best approach was fiscal policy.

Answer 2

Which best describes a difference between the views of Milton Friedman and John Maynard Keynes on the economy? Friedman said that monetary policy should be used to influence aggregate demand, while Keynes believed the best approach was fiscal policy I believe that this was the main difference between them. Keynes developed his theories during the Great Depression and believed, like Franklin Roosevelt in government spending to stimulate employment and consumption while Friedman later on recommended less government intervention and perhaps using things like interest rates to control the economy.