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


£36 /hr

William A.

Degree: Law (Bachelors) - Cambridge alumni University

Subjects offered: Economics, Maths+ 3 more


“I recently graduated from the University of Cambridge in Law and completed my A Levels in 2012 with 4 A*s in Maths, Economics, Physics and Chemistry.I am a friendly and approachable person and have previously tutored A Level Econom...”

£26 /hr

Priya L.

Degree: Economics (Bachelors) - Warwick University

Subjects offered: Economics, Maths+ 1 more

Further Mathematics

“About Me: I recently graduated from the University of Warwick with an Economics degree. I am currently on a gap year before I begin my graduate role as a Management Consultant in October. I decided to tutor because I wanted to spend m...”

£20 /hr

Uthmaan I.

Degree: economics (Bachelors) - Durham University

Subjects offered: Economics, Maths


“I am currently an Economics student at Durham University. Through my passion of economics and maths, I hope to make sessions not only useful but also enjoyable. During the sessions, feel free to ask any questions in regard to what you...”

MyTutor guarantee

About the author

Tom H.

Currently unavailable: for new students

Degree: Economics (Bachelors) - Durham University

Subjects offered: Economics, Spanish+ 3 more

Business Studies

“Top 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

Do monopolies always seek to profit maximise?

Define the term ‘derived demand’

The government has introduced an ad valorem tax on petrol. The likely effect is: A) Increase in sales of petrol B) Increase in carbon emissions from electric cars C) Increase in demand for bus travel D) Decrease in sale of electric cars

What are the causes and effects of globalisation?

View A Level Economics tutors


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