In the monetarist view, if there is an increase in money growth then
a. the money supply and inflation will grow proportionally, with no effect on output and employment.
b. the money supply grows faster than the inflation rate, with unfavorable effects on output and employment.
c. the money supply grows faster than the inflation rate, leading to an increase in output and employment in the short-run.
d. there will be no effect on output, employment, or inflation, in the long-run.
e. both c and d.
C
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
The agreement between the United States, Mexico, and Canada that sought to lower trade barriers is known as
A) the General Agreement on Tariffs and Trade. B) the North American Free Trade Agreement. C) the World Trade Organization. D) the Smoot-Hawley Tariff Act. E) the New World Free Trade Agreement.
Why might a VAT be more popular politically than a retail sales tax?
a. Its transparency appeals to voters. b. Its lack of transparency makes it easier to misunderstand its effects. c. It is more efficient per dollar raised. d. It is more consistent with the benefit principle of taxation.
Which of the following would be a disadvantage of the partnership form of business?
a. limited liability b. too many products c. unlimited liability d. profits flow directly to the one person responsible for creating it e. one person must make all of the important managerial decisions