According to classical macroeconomic theory, the price level, but not real GDP, are affected by changes in the
a) money supply.
b) labor supply.
c) supply schedule.
d) aggregate supply.
Ans: a) money supply.
You might also like to view...
What matters to people is the real value of money or income
Indicate whether the statement is true or false
Assuming that, over a given period, the value of transactions in current dollars is $8 trillion and the money stock is $500 billion. What is the transaction velocity of money?
a. .0625 b. 12 c. 16 d. None of the above
Which of the following does not reflect a positive rate of time preference?
a. Concert-goers yell and scream when the stage is still dark an hour after the concert was scheduled to start. b. Borrowers have to pay interest on loans. c. A dieter, allowed three ounces of butter per day, spends the whole allotment on her toast at breakfast. d. A dieter, allowed three ounces of butter per day, promises himself some new clothes if he can break the habit of spending the whole allotment on his toast at breakfast. e. A student stays up late every night for a week to finish her term paper two months before it is due.
What is the advantage of reporting the GDP on a quarterly basis?
What will be an ideal response?