One thing that Keynesians and Monetarists agree about is
a. the shape of the money demand function.
b. that business cycles are primarily driven by changes in aggregate demand.
c. the use of monetary and fiscal policy in stabilizing output.
d. that the public forms their expectations primarily by looking backwards.
e. both b and d.
E
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Economists use the term shocks to mean
A) unexpected government actions that affect the economy. B) typically unpredictable forces that have major impacts on the economy. C) sudden rises in oil prices. D) the business cycle.
When a supply curve is relatively flat, the
a. sellers are not at all responsive to a change in price. b. equilibrium price changes substantially when the demand for the good changes. c. supply is relatively elastic. d. supply is relatively inelastic.
When a country runs a deficit in its current account, the amount of foreign exchange that the country gets from exporting goods and services and from receipts of unilateral transfers falls short of the amount needed to pay for its imports and to make unilateral transfers. Where does the additional foreign exchange come from?
a. From domestic citizens who purchase foreign goods and services b. From domestic citizens who invest in production facilities, real estate, or financial assets in foreign countries c. From foreigners who invest in domestic production facilities, real estate, or financial assets, and from official government transactions in foreign currency d. From government who buy bonds and stocks from foreigners
"Stocks and bonds" are collectively known as
A) securities. B) equities. C) real property. D) shares.