Investment spending is insensitive to changes in the interest rate and the SRAS curve is upward sloping. According to a monetarist, an increase in the money supply will __________ Real GDP. According to a Keynesian, an increase in the money supply will __________ Real GDP
A) raise; not change
B) not change; raise
C) lower; lower
D) raise; lower
E) none of the above
A
You might also like to view...
Suppose that if the price of plane tickets increased, more people would choose to travel by train. If this happened, you would know that:
A. plane tickets and train tickets are complements. B. plane tickets are an inferior good. C. the cross-price elasticity between plane tickets and train tickets is negative. D. the cross-price elasticity between plane tickets and train tickets is positive.
Suppose per capita real GDP grows by 7% per year. Based on the Rule of 70, approximately how many years will it take for the level of per capita real GDP to double?
A) 7 years B) 10 years C) 4.9 years D) none of the above
In a model of consumption and leisure, a drop in the wage will cause workers to work less if tastes are quasilinear in leisure.
Answer the following statement true (T) or false (F)
Consider a world with three income earners. Individual A earns $20,000 and pays $1,000 in taxes. Individual B earns $50,000 and pays $5,000 in taxes. Individual C earns $100,000 and pays $2,000 in taxes
Which of the following best classifies the income tax system in this world? a. proportional b. progressive c. regressive d. none of the above