Monetarists argue that government deficits financed by monetary expansion cause(s)
A) velocity to increase.
B) aggregate demand to increase.
C) aggregate demand to decrease.
D) no change in aggregate demand or aggregate supply.
B
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________ shows that if all resources are fully and efficiently utilized, more of one good can be produced only by producing less of another good
A) The mixed market system B) Comparative advantage C) The production possibilities frontier model D) Absolute advantage
Which of the following is not a problem with a public good?
a. An incentive to free-ride b. A public good is often underconsumed c. An absence of private property rights d. An inability to limit consumption to those who purchase the good e. A public good is usually underproduced
The economy reaches full employment when the unemployment rate equals zero
a. True b. False Indicate whether the statement is true or false
An adverse supply shock would shift _____
What will be an ideal response?