Money neutrality is violated in which model?
a. new Keynesian model.
b. monetarist model.
c. real business cycle model.
d. classical model.
e. both c and d.
E
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John has been laid off from his job because of a general downturn in the economy. John's unemployment is best classified as
A) structural. B) cyclical. C) frictional. D) full. E) avoidable.
Which of the following statements about the characteristics of debt and equities is TRUE?
A) They can both be long-term financial instruments. B) Bond holders are residual claimants. C) The income from bonds is typically more variable than that from equities. D) Bonds pay dividends.
Real wages have fallen since 1973 for all the following reasons except
A. millions of high paying manufacturing jobs have migrated to low wage countries. B. the slowing down of productivity growth. C. the switch from high paying manufacturing jobs to lower paying service sector jobs. D. All of these choices are reasons.
Issues of growth are generally considered in:
A. the long-run framework. B. the short-run framework. C. both the short-run and the long-run frameworks. D. neither the short-run nor the long-run frameworks.