According to monetarists, when will the economy move back to the natural rate of unemployment after a change in output?
a) In the short-run.
b) In the long-run.
c) Immediately after a decrease in the money supply.
d) Immediately after an increase in the money supply.
Ans: b) In the long-run.
You might also like to view...
Which of the following is NOT an example of transactions costs?
A) high interest rates B) lawyers' fees C) brokerage commissions D) minimum investment requirements
The 2009 fiscal stimulus bill represented approximately
A. 5.5 percent of GDP and was designed to close the expansionary gap. B. 5.5 percent of GDP and was designed to close the recessionary gap. C. 7.8 percent of GDP and was designed to close the expansionary gap. D. 7.8 percent of GDP and was designed to close the recessionary gap.
In the classical macroeconomic model, a decrease in the real wage would cause
a. a decrease in the marginal product of labor and an increase in the quantity demanded for labor. b. an increase in the marginal product of labor and an increase in the quantity demanded for labor. c. no change in the quantity demanded for labor. d. an increase in both the supply of and demand for labor.
A supply curve that is upward sloping means that:
A) demand is being ignored. B) consumers will buy less at lower prices. C) suppliers will want to sell more at higher prices. D) suppliers will want to sell less at higher prices.