Monetarists and classical economists:
A. assume that stimulative monetary policy will create high levels of GDP without inflation.
B. assume that stimulative monetary policy will create high levels of GDP and slightly high prices.
C. assume the economy operates at full employment and stimulative monetary policy will only cause the price level to rise.
D. assume that the economy operates at full employment and stimulative monetary policy will increase both aggregate supply and aggregate demand.
Answer: C
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The above figure shows the supply and demand curves for rice in the U.S. and in Japan. Assume there is no trade between the two countries. If bad weather causes the supply curves in each country to shift leftward by the same amount, then
A) the price will increase the same amount in both countries. B) the price will decrease the same amount in both countries. C) the price will increase more in Japan than in the U.S. D) the price will decrease more in Japan than in the U.S.
Within a game theory model, if a change in decision-making raises corporation A's profits by $50 and lowers corporation B's profits by $40, the game is a
A) negative-sum game. B) zero-sum game. C) positive-sum game. D) cooperative game.
A dieter who prefers to eat small portions at his next meal, but chooses a large portion at mealtime when it arrives is:
A. dynamically consistent. B. statically consistent. C. exhibiting a present bias. D. exhibiting a substitution bias.
An example of a renewable resource would be:
A. a river. B. natural gas. C. coal. D. All of these are examples of renewable resources.