How do Keynesian and Monetarist economic theories differ in their approaches to addressing unemployment and inflation?

Keynesian economics emphasizes active government intervention to manage economic cycles, advocating for fiscal policies like increased government spending and tax cuts to address unemployment. Monetarist theory, on the other hand, stresses the importance of controlling the money supply to manage inflation, arguing that excessive government intervention can lead to economic inefficiencies and higher inflation.

Start Using PopAi Today