In the Friedman-Lucas money surprise model
A) If actual inflation is higher than anticipated inflation, then output must be above its trend value.
B) If actual inflation is higher than anticipated inflation, then output must be below its trend value.
C) money is neutral.
D) monetary policy does not work.
A
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Suppose that when the price of hamburgers increases, the Ruiz family increases their purchases of hot dogs. To the Ruiz family
A) hamburgers and hot dogs are normal goods. B) hamburgers and hot dogs are substitutes. C) hamburgers and hot dogs are inferior goods. D) hamburgers and hot dogs are complements.
Most of the pressure for a monetary growth rule has disappeared because since 1980
A) the relationship between movements in interest rates and movements in real GDP and the price level have become much weaker. B) the relationship between movements in the money supply and movements in real GDP and the price level have become much stronger. C) the relationship between movements in the money supply and movements in real GDP and the price level have become much weaker. D) the relationship between movements in interest rates and movements in real GDP and the price level have become much stronger.
In the U.S., government expenditure accounts for
a. 10% of GDP b. 20% of GDP c. 40% of GDP d. government expenditure is not included in GDP
The pure competitor usually charges higher prices and offers more output than the monopolist or oligopolist
Indicate whether the statement is true or false