Briefly describe monetarism and the monetary growth rule
What will be an ideal response?
Monetarism refers to the macroeconomic theories of Milton Friedman and his followers, particularly the idea that the quantity of money should be increased at a constant rate. The monetary growth rule is a rule adhered to by monetarists. It is a plan for increasing the quantity of money at a fixed rate that does not respond to changes in economic conditions.
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When prices do not change very much, the income-expenditure model can be used to understand economic fluctuation in the
A) long run. B) fiscal year. C) short run. D) federal budget allocation.
Monopolistically competitive firms ignore the effect of their decisions upon other firms in the industry because
a. each firm is large relative to the market b. each firm is small relative to the market c. there are few sellers in the market d. there is only one seller in the market e. all firms follow the same known pricing rules
Exports minus imports of final goods and services
What will be an ideal response?
A curve that shows the relationship between the wage and the quantity of labor demanded in the short run is:
A. the marginal revenue product of labor curve. B. the marginal revenue curve. C. the marginal product of labor curve. D. None of these