Refer to the information provided in Figure 32.2 below to answer the question(s) that follow.
Figure 32.2Refer to Figure 32.2. According to the monetarists, ________ can be caused when AD1 shifts to the left.
A. inflation
B. an increase in money demand
C. a recession
D. stagflation
Answer: C
You might also like to view...
If a Japanese stereo priced at 1,000,000 yen can be purchased for $1,000, the exchange rate is:
a. 1,000 yen per dollar. b. 1,000 dollars per yen. c. 0.001 dollars per yen. d. none of these.
The classical model
a. relies on the equivalency of the labor, capital, and land resource markets b. includes a land market and a labor market c. focuses primarily on capital markets d. focuses primarily on labor markets e. focuses on labor, capital, and land markets
When the extraordinary failures of S&Ls drove FSLIC into financial crisis, the
a. government diverted taxes from funding government projects to support the FSLIC b. government created the FDIC to replace the FSLIC c. government created the Resolution Trust Corporation to handle the crisis d. Federal Reserve permanently lowered the discount rate which relieved FSLIC of financial pressure e. Treasury Department issued bonds to cover FSLIC losses
In computing GDP, market prices are used to value final goods and services because
a. market prices do not change much over time, so it is easy to make comparisons between years. b. market prices reflect the values of goods and services. c. market prices reflect the quantity sold. d. None of the above is correct; market prices are not used in computing GDP.