MYTUTOR SUBJECT ANSWERS

635 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

67 SUBJECT SPECIALISTS

£24 /hr

Nicolo G.

Degree: BSc Government and Economics (Bachelors) - LSE University

Subjects offered:Economics, Maths+ 2 more

Economics
Maths
History
Biology

“I am currently a student of economics and government at the London School of Economics. I developed a passion for economics during my IB diploma studies and I hope I will be able to instill that passion in you as well. I am very patien...”

£20 /hr

Aimee F.

Degree: Economics (Bachelors) - Leeds University

Subjects offered:Economics, Maths+ 2 more

Economics
Maths
Further Mathematics
-Personal Statements-

“Hi, I'm Aimee and I study Economics at the University of Leeds. I am happy to help students in Economics and Math as they are two subjects I really love. I am patient and understanding and will happily go through things as many times ...”

£26 /hr

Joel G.

Degree: Economics with a year in industry (Bachelors) - Liverpool University

Subjects offered:Economics, Maths+ 1 more

Economics
Maths
Geography

“I am an economics student at the University of Liverpool. I am really interested in economics and mathematics and I would love to share this intererest with yourselves. I I have taught children from year 7 to year 11 how to debate thr...”

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

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

What is meant by an oligopoly being both interdependent and uncertain in their price strategies?

What is the perfect technique for reaching the top marks in the longer essay questions?

What is protectionism?

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