In the Monetarist model, the long-run holds when
a. the money supply is constant.
b. real wages are constant.
c. output is constant.
d. the expected price level equals the actual price level.
e. none of the above.
D
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Explain why sunk costs are irrelevant to choosing the best amount of an activity.
What will be an ideal response?
In recent years the impact of bracket creep has been limited by the
What will be an ideal response?
A total cost function will start
A. at the origin if there are fixed costs. B. at the origin if there are no fixed costs. C. on the vertical axis if there are no fixed costs. D. on the horizontal axis.