Monetarists reject using discretionary monetary policy as an effective stabilization tool because
a. it would require the money supply to grow at a rate equal to the economy's long-run rate of economic growth.
b. they do not believe that changes in the money stock affect output or prices.
c. they believe that there are lengthy and variable time lags between when a change in monetary policy is instituted and when the change exerts its primary impact on output and prices.
d. they believe monetary policy can stimulate aggregate demand, but it cannot control inflation.
C
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In the short run, a firm attempting to minimize losses:
a. must leave the industry in order to maximize opportunity costs. b. will produce as long as marginal cost equals marginal revenue. c. will produce as long as total revenue exceeds total variable cost. d. will produce as long as total revenue exceeds total fixed cost. e. will produce as long as competitors continue to produce.
Suppose Jess resigns from her low paying job. After looking for a new job for two weeks she is highly frustrated and gives up looking for a better-paying job. According to the U.S. Bureau of Labor Statistics, Jess would:
a. be considered as a part of the labor force. b. be considered employed. c. be considered temporarily unemployed. d. not be considered as a part of the labor force. e. be considered as seasonally unemployed.
According to Say's Law, in the aggregate
a. demand creates its own supply b. the production of output will generate exactly enough income to purchase what has been produced c. the economy is incapable of producing output fast enough to ensure full employment d. full employment cannot be sustained without government action e. consumer saving prevents the economy from reaching full employment
The advice to "retrain" would be most appropriate for which of the following types of unemployment?
a) Cyclical unemployment b) Structural unemployment c) Frictional Unemployment d) Core Unemployment