A monetarist would advocate ________ money supply during recessions and ________ money supply during periods of high inflation.
A. increasing; increasing
B. increasing; decreasing
C. decreasing; increasing
D. none of the above
Answer: D
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Buyers and sellers receive signals from markets
A) by listening to the TV news programs. B) through the price system. C) from the gossip columns in the newspapers. D) from their friends and acquaintances.
Caseload reduction should be viewed as the sole measure of poverty performance
Indicate whether the statement is true or false
Contractionary fiscal policy will most likely
A. raise inflation. B. raise real GDP more than the increase in the price level. C. lower the price level. D. raise real GDP.
Assume that the government decides to use fiscal or monetary policy to stimulate the economy and that this action comes as a surprise to most individuals and businesses. In the short run, the result will be
A. an increase in aggregate demand and a fall in the price level. B. a decrease in aggregated demand and a rise in the price level. C. a decrease in the average duration of unemployment and a decrease in the unemployment rate. D. an increase in the average duration of unemployment and an increase in the unemployment rate.