Friedman challenged the view of Keynesian macroeconomics on the relationship betweenMultiple choice question.income and consumption.unemployment and GDP.inflation and the price level.fiscal policy and monetary policy.

Keynesian economics could not be used to explainMultiple choice question.hyperinflation.stagflation.minimum wage laws.the Great Depression.

Keynesian economic models emphasize the role of:Question 12Answera.Aggregate demand (AD) and government interventionb.Supply and demand in free marketsc.Long-term economic growthd.Savings and investments

Monetarism argues that nearly all economic fluctuations are caused by changes inMultiple choice question.wage rates.money supply.money demand.the velocity of money.

In John Maynard Keynes's demand-side economic theory, an economic recession can be shortened throughMultiple Choiceraising tariffs in the global economy.the natural workings of the free-market system.a determination on the part of government not to spend any more than it receives in taxes.government spending programs.tax cuts for the wealthy.

The economic models that assume markets are monopolistically competitive and adjustments to equilibrium take time due to sticky wages and prices is known asMultiple choice question.monetarism.the New Classical Model.the New Keynesian Model.Keynesian economics.