The monetarist assumption that monetary policy cannot change long-run equilibrium income is based on the idea that:
a. the long-run aggregate supply curve is horizontal.
b. the long-run Phillips curve is vertical.
c. the price level in the long run is fixed.
d. the aggregate demand curve cannot shift.
e. the long-run Phillips curve is upward-sloping.
b
You might also like to view...
In the Keynesian liquidity preference framework, an increase in the interest rate causes the demand curve for money to ________, everything else held constant
A) shift right B) shift left C) stay where it is D) invert
If demand is elastic, an increase in price will increase total revenue
a. True b. False Indicate whether the statement is true or false
Net worth is calculated by:
a. Assets – Liabilities b. Assets + Liabilities c. Liabilities – Assets d. Liabilities – Depreciation
Refer to the information provided in Table 22.6 below to answer the question(s) that follow.
Table 22.6
Refer to Table 22.6. If 2014 is the base period, the price index in 2014 is
A. 1000. B. 100. C. 10. D. 1.