The Keynesian AD curve differs from the classical AD curve in that:
a. the classical AD curve can shift in response to non-monetary shocks.
b. the Keynesian AD curve can shift in response to monetary shocks.
c. the Keynesian AD curve can shift in response to non-monetary shocks.
d. there is no difference, both are determined by the quantity theory.
e. none of the above.
C
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If a Japanese importer could buy $1,000 U.S. for 122,000 yen, the rate of exchange for one dollar would be ________.
A. 1,220 yen B. 122 yen C. 820 yen D. 8.19 yen
For deflation to occur,
A) national income must decrease. B) real GDP must decrease. C) the price level must decrease. D) nominal GDP must decrease.
In the United States, globalization has caused the demand for unskilled labor to ________ and the demand for skilled labor to ________
A) decrease; increase B) decrease; decrease C) increase; increase D) increase; decrease
In the figure above, a factor that could cause the demand for bonds to decrease (shift to the left) is
A) an increase in the expected return on bonds relative to other assets. B) a decrease in the expected return on bonds relative to other assets. C) an increase in wealth. D) a reduction in the riskiness of bonds relative to other assets.