For each of the following statements, specify whether a Keynesian, a monetarist, or a classical economist is most likely to support it, and explain in 1-2 sentences why. (Note: each economic view may be used more than once or not at all.)
A) “During a recession, government spending should be minimized. The Federal Reserve should focus on maintaining a constant growth in the money supply to help revive the economy.”
B) “Expansionary fiscal policy can help bring an economy out of a slump such as the Great Recession or Great Depression.”
C) “Markets should be left to correct themselves on their own, without any outside policy interventions.”
D) “Unemployment gravitates around a constant rate known as the Non-Accelerating Inflationary Rate of Unemployment, or NAIRU, implying a short-run trade off between inflation and unemployment.”