Keynesians believe that the private economy will adjust too slowly to economic disturbances, so discretionary macro policy should be used by the government. In response, monetarists argue that __________.

1. the economy does not adjust at all to economic disturbances and therefore should be left alone
2. the economy adjusts much more quickly than Keynesians believe and should be left alone
3. the speed of adjustment is unimportant, because the economy is always close to full-employment equilibrium
4. attempts by the government to speed up the adjustment process will be unsuccessful if the problem is sluggish economic growth

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The detailed answer for the above question is provided below 3 the speed of adjustment is unimpor... View the full answer