The classical and Monetarist models agree that
a. the use of fiscal policy can stabilize output.
b. money demand is inherently unstable.
c. the public has perfect information about the price level.
d. increases in the money supply are the primary cause of inflation.
e. none of the above
D
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What is the law of one price?
What will be an ideal response?
Competition between the United States and Mexico is
A) equivalent to the competition between two giant corporations. B) a struggle over which country will get the best jobs. C) unfair if wages in Mexico are lower than in the United States. D) a struggle over which country will keep the most advanced technology. E) not a meaningful way to analyze trade.
If firms are competitive and profit maximizing, the price of a good equals the
a. marginal cost of production. b. fixed cost of production. c. total cost of production. d. average total cost of production.
If the economy were producing at 12 units of outboard motors and 8 units of robots
A. the economy would be at a point inside its production possibilities curve.
B. the economy would be at a point outside its production possibilities curve.
C. the economy would have unemployed resources.
D. the economy would be at a point inside its production possibilities curve AND would have unemployed resources.