MYTUTOR SUBJECT ANSWERS

720 views

Explain the difference between the Monetarist and Keynesian views of unemployment

Monetarists believe that prices and money wages are flexible and can adjust quickly, meaning that the real wage is at the right level to achieve long run equilibrium in the labour market. All unemployment is classified by a monetarist as 'voluntary'.

 

Keynesians contrastingly believe that money wages are slow to adjust to changes in the economy and so the real wage may not adjust to clear the labour market. This means there can be voluntary as well as involuntary unemployment.

 

The problem with unemployment according to Keynesians is that the 'short run' can actually be quite a long time which is why government intervention is advised.

Tom H. A Level Economics tutor, A Level Maths tutor, A Level Spanish ...

2 years ago

Answered by Tom, an A Level Economics tutor with MyTutor


Still stuck? Get one-to-one help from a personally interviewed subject specialist

56 SUBJECT SPECIALISTS

£24 /hr

Grace D.

Degree: Economics (Bachelors) - Newcastle University

Subjects offered:Economics, Maths+ 2 more

Economics
Maths
Geography
English

“About me:I am currently in my second year of an Economics degree at Newcastle Univeristy. I am very passionate about my subject and am a leading member of the Economics Society there, in addition to competing in various Business and ...”

£30 /hr

James T.

Degree: Economics & Management (Bachelors) - Bristol University

Subjects offered:Economics, Maths

Economics
Maths

“I am currently studying Economics & Management at the University of Bristol, and love working with students of all ages, specialising in Maths and Economics at both A-Level and GCSE. I have been teaching drums and coaching tennis for ...”

Charley H. A Level Maths tutor, GCSE Maths tutor, A Level Economics t...
£20 /hr

Charley H.

Degree: Mathematics and Economics (Bachelors) - Liverpool University

Subjects offered:Economics, Maths

Economics
Maths

“About Myself: I am currently studying Mathematics and Economics at The University of Liverpool. I have always enjoyed these two subjects, especially maths, and I hope I can help in assisting you achieve your goal- whether that be pass...”

About the author

Tom H. A Level Economics tutor, A Level Maths tutor, A Level Spanish ...
£26 /hr

Tom H.

Degree: Economics (Bachelors) - Durham University

Subjects offered:Economics, Maths+ 2 more

Economics
Maths
French
-Personal Statements-

“Highyl reviewed tutor from Durham University, ready to help you improve your grades, all the way to A*.”

You may also like...

Posts by Tom

Explain the difference between the Monetarist and Keynesian views of unemployment

Explain what you understand by the Lorenz Curve and Gini Coefficient.

Other A Level Economics questions

Why do some argue that there is a trade off between unemployment and inflation?

Evaluate policies which a UK government could use to control the activities of oligopolists. (25 marks)

What factors can shift the supply curve and explain the impact of a change in one of these factors on the supply curve.

Evaluate the view that attempts by governments to eliminate market failure by intervening in markets for public goods and merits goods will inevitably lead to government failure.

View A Level Economics tutors

We use cookies to improve your site experience. By continuing to use this website, we'll assume that you're OK with this. Dismiss

mtw:mercury1:status:ok