Answer :
Keynesians and neoclassicals agree on the appropriate policy response to a positive supply shock. This policy response would be to use government policy.
Suppose a decrease in aggregate demand causes the economy to go into recession with high unemployment. The Keynesian response would be to use government policy to stimulate aggregate demand and eliminate the recessionary gap.
Keynesians believe fiscal and monetary policy should be used actively in the short run to manage aggregate demand. Neoclassicals believe that the economy is self-correcting, and attempting to fine-tune the economy through monetary and fiscal policies makes it worse.
Hence, the Keynesians and neoclassicals agree on the appropriate policy response to a positive supply shock. This policy response is to use government policy.
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