A monetarist economist believes that
A) if the economy was left alone, it would rarely operate at full employment.
B) the economy is self-regulating and always at full employment.
C) the economy is self-regulating and will normally, though not always, operate at full employment if monetary policy is not erratic.
D) the economy is self-regulating and will normally, though not always, operate at full employment if fiscal policy is not erratic.
C
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The form of business organization with the most flexibility of management is the
a. sole proprietorship. b. partnership. c. corporation. d. cooperative.
Suppose that the banking system currency has no excess reserves and that a bank receives a deposit into a checking account of $10,000 in currency
If the required reserve ratio is 0.20, what is the maximum amount that the BANKING SYSTEM can lend out? A) $8,000 B) $10,000 C) $40,000 D) $50,000
The ________ is the ratio of the number of people in the labor force to the total adult population
a. unemployment rate b. labor force c. labor force participation rate d. employment rate
In the above figure, starting at E1, if there is a supply shock that is permanent, the
A. aggregate supply would shift to SRAS1 and LRAS0 would shift to LRAS1. B. aggregate supply would shift to SRAS1 and LRAS1 would shift to LRAS0. C. aggregate supply would shift to SRAS2 and LRAS0 would shift to LRAS1. D. aggregate supply would shift to SRAS1 and then return to SRAS0.