Contrast Friedman’s and the Keynesian views of the relationship between real output (or employment) and aggregate demand in both the short run and the long run. Contrast the conclusions that Friedman...

Contrast Friedman’s and the Keynesian views of the relationship between real output (or employment) and aggregate demand in both the short run and the long run. Contrast the conclusions that Friedman and Keynesians draw from this analysis of the aggregate demand–output relationship for the usefulness of activist policies to stabilize output and employment. To what degree do differences in the theoretical analysis explain the differences in policy conclusions?