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27. The Modern Theory of Keynesian economists evolved bécause which original Keynesian
assumption was no longer true in the post-wW economy? 28. Monetarist Theory evolved
because Monetarists believed that the economic problem ofwas the only problem that should be
focused on. The economic problem ofwould easily be resolved by letting the market take care of
it without interference from any government agency. 29. Supply-side Theory has the(most/least/
most compelling) research behind it of all the macroeconomic theories
Solution
Post-Keynesian economics refers to a collection of emerging schools within macroeconomics
that are attempting to "go back to the basics" of the work of John Maynard Keynes. In the post-
World War II era, after Keynes died, his theories merged with more neoclassical-oriented
thought and became the schools called New Keynesianism and neo-Keynesianism. These schools
sought to root Keynes' ideas in a microeconomic approach. Post-Keynesians, by focusing more
on macro-effects, have in one way moved closer back to Keynes inflation and inflation least
compelling research because they believe on micro economics variable

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