Question 21 • CMS 2026-2027 Economics and Personal Finance INITIAL CREDIT
Friedman, a monetarist, emphasized using monetary policy—especially managing the money supply—to influence economic activity and aggregate demand. Keynes argued that fiscal policy, such as government spending and taxation, was an effective way to address weak demand, particularly during a recession. So the best description is that Friedman favored monetary policy while Keynes favored fiscal policy.
AI-written and checked against the verified answer.