1. Keynesian Economics: Focus on the demand side; Monetarism: Emphasize the supply side. 2. Keynesian Economics: Increase government spending; Monetarism: Control money supply for stability. 3. Keynesian Economics: Active government role; Monetarism: Limited government involvement. 4. Keynesian Economics: Favored by liberals; Monetarism: Favored by conservatives. 5. Keynesian Economics: Addresses unemployment and instability; Monetarism: Promotes long-term price stability. 6. Keynesian Economics: Risk of budget deficits; Monetarism: Risk of relying too much on monetary policy.
1. Keynesian Economics: The primary focus should be on the demand side of the economy, emphasizing government intervention to stimulate spending and boost overall demand.
Monetarism: The primary focus should be on the supply side, emphasizing controlling the money supply and letting markets naturally adjust.
2. Keynesian Economics: Increase government spending to stimulate demand and create jobs, promoting economic recovery.
Monetarism: Control the money supply and maintain a stable monetary policy to encourage long-term economic growth.
3. Keynesian Economics: The government should play an active role, especially during economic downturns, by implementing fiscal policies to stabilize the economy.
Monetarism: The government's role should be limited, with an emphasis on maintaining a stable monetary environment and allowing markets to self-adjust.
4. Keynesian Economics: Politicians favoring this approach are often liberal, as it aligns with their belief in active government intervention for economic stability.
Monetarism: Politicians favoring this approach are often conservative, valuing free-market principles and limited government involvement.
5. Keynesian Economics: One benefit is the ability to address unemployment and economic instability through active government policies.
Monetarism: One benefit is the emphasis on stable monetary policies, which can lead to long-term price stability and economic growth.
6. Keynesian Economics: One drawback is the potential for budget deficits and government debt due to increased spending during economic downturns.
Monetarism: One drawback is the risk of relying too heavily on monetary policy, which may not address structural issues in the economy.