Examine Critically The Classical And...

[timije]

...keynesian Theory Of Output And Employment?

[Girl M]

can i make a few suggestions on posting questions? it would be good if you posted in lowercase letters instead of all caps like most people do. it makes your question easier to read and more people will want to answer it.next, your question isn't clear to me. could you phrase it more specifically? ie. can someone tell me the diff between theory a and theory b?

[Giggly Giraffe]

Modern Monetarists treat the quantity theory more flexibly than their Classical ancestors did. Money influences spending in a predictable way rather than in a rigid numerical fashion. Moreover, if the economy is at less than full employment, even real output might respond to changes in teh money supply. But the natural tendency toward full employment eliminates any systematic impact on real output of changes in money supply.