The aggregate supply curve in the short run is vertical in __________ version of the AD-AS framework
A) the simple quantity theory of money
B) the monetarist
C) both the simple quantity theory of money and the monetarist
D) neither the simple quantity theory of money nor the monetarist
A
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Currency circulated by banks that could be redeemed for gold was called
A) junk bonds. B) banknotes. C) gold bills. D) state money.
The most numerous form of business organization in the United States is
a. the partnership b. the multinational c. the corporation d. the sole proprietorship e. none; all business organizations are equally numerous
According to classical macroeconomic theory,
a. the price level is sticky in the short run and it plays only a minor role in the short-run adjustment process. b. for any given level of output, the interest rate adjusts to balance the supply of, and demand for, money. c. output is determined by the supplies of capital and labor and the available production technology. d. All of the above are correct.
The higher the expected rate of inflation,
A. the higher the real and nominal rates of interest. B. the higher is the real rate of interest. C. the lower is the nominal rate of interest. D. the lower is the real rate of interest.